Time.news – The recovery train does not wait, we must not waste time but immediately start the Recovery Plans to get out of the tunnel of the pandemic and economic emergency. And not only that: at the same time, vaccination campaigns must be accelerated.
This in synthesis the message of the central banks to eurozone governments, and not only. Just yesterday, US Treasury Secretary Yanet Yellen urged not to abandon fiscal stimuli too soon.
And today the ECB intervenes several times: first Eurotower Vice President Luis de Guindos promises to continue an accommodative tax policyi but spurs Eurozone economies to accelerate vaccination campaigns and catch the train of recovery in the second half of the year, which could be “robust”. And instead the downside risks for the first quarter “materialized”.
Another member of the ECB board is even more explicit: a delayed payment of the Recovery Fund would be “an economic disaster for Europe”, argues Isabel Schnabel. “It is not up to me to comment on the German Constitutional Court but it would be an economic disaster for Europe if the disbursement of funds were indefinitely delayed”, he underlines, recalling the recent ruling of the German Constitutional Court which suspended the ratification process of the Recovery Fund against appeals against deficit funded investment program.
For this reason, he adds, in addition to speeding up vaccination campaigns, “it is important for Europe to give a strong fiscal response, in the form of an EU recovery fund amounting to 750 billion euros”.
The governor of Bankitalia Ignazio Visco also intervened to underline the importance of timing for the use of the Recovery Fund: a chapter that he defines as “crucial” as it “has a medium-term orientation, for the months and years to come is It is important to ensure that we are able to maintain stable and sustainable recovery through investments in infrastructure and reforms. “
In the meantime, as already assured by de Guindos and in recent days by President Christine Lagarde herself, the ECB will continue to do its part: “It is too early for discussions to reduce its pandemic purchases of emergency bonds from the third quarter” observes for his part the head of the Greek central bank Yannis Stournaras, rejecting the suggestions of the most conservative politicians.
Dutch policymaker Klaas Knot and his Austrian counterpart Robert Holzmann are in fact of the opinion that an improved outlook could allow the ECB to start curbing its emergency pandemic buying program. But Stournaras replies today: “We have no evidence that the economic outlook will become so favorable in the third quarter”.