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Donohoe (Eurogroup): There is a way to avoid a recession in the eurozone

Donohoe (Eurogroup): There is a way to avoid a recession in the eurozone

There is a risk of a recession in the eurozone but it can be avoided with proper support and fiscal policy, said Eurogroup chief Paschal Donohoe.

While the energy crisis and security developments could affect economic performance, the group is implementing measures to support countries in need, he said in an interview with Bloomberg television.

A coordinated fiscal approach for 2023 means it can “create other sources of economic momentum to help us offset some of the challenges we now know are coming,” he added.

Even so, Donohoe, who is also Ireland’s finance minister, said EU borrowing would be lower next year and measures to tackle rising living costs would be “more targeted” than the broader ones. measures implemented during the pandemic.

He added that he has “absolute confidence” in the ECB and the ministers in managing market pressures.

“I am absolutely convinced that the right measures can be taken to safeguard and protect the eurozone as we respond to the developments that are taking place,” Donohoe said.

Source: Capital