Eurozone finance ministers will in the coming weeks consider the fiscal policy implications of Russia’s invasion of Ukraine so it can support the economy if needed, Eurogroup President Paschal Donohoe said.
Donohoe told a news conference that last December the 19 countries sharing the euro agreed to a moderately encouraging fiscal stance for 2022.
“Within three weeks, the Eurogroup will review this issue again. It will discuss the coordination of our budget policy and that discussion will come at the right time”, said Donohoe after the ministers’ meeting.
“Between now and then (this) will allow us to revisit and review our strategy to ensure that we can support our economies and our citizens in this most challenging time,” he said.
The European Union (EU) is also revising its rules that limit borrowing, or the Stability and Growth Pact, suspended since 2020 to give governments room to fight the Covid-19 pandemic.
The rules must be reinstated from early 2023 because, after a deep recession caused by lockdowns to contain the spread of the coronavirus, economic growth has returned to pre-pandemic levels and is strong.
But European Commission Vice President Valdis Dombrovskis told the press conference that the Commission was ready to be flexible.
“We are ready to adjust (economic) policy if necessary,” he said.
Source: CNN Brasil
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