ECB's Lagarde: Economic Support Needed "Well Into the Recovery"
Comment of the Day

April 14 2021

Commentary by Eoin Treacy

ECB's Lagarde: Economic Support Needed "Well Into the Recovery"

Here are a couple of soundbites from Christine Lagarde’s statements today.

“We consider that both fiscal and monetary support are needed and will be needed until the pandemic crisis is over” and “will be needed well into the recovery,” ECB President Christine Lagarde says at Reuters event.

Preserving favorable financing conditions is a condition for the economy to recover -- “they go hand in hand”

Eoin Treacy's view

The question is not whether the ECB will provide assistance but rather how much. The spectre of deflation has been hanging over Europe for most of the last decade and there is a credible argument the region is heading into a Japan-like era of lower consumption and low growth. Avoiding that potential is the primary goal of both the ECB and every Eurozone government.

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