Time.news – Despite the difficult situation on the front of the fight against the pandemic, the recovery in the European Union “will move fast” in the second half of the year and the Union will see a rebound in its economy. This was stated by the president of the ECB, Christine Lagarde in a passage of the interview given to the CNBC.
Optimistic Lagarde, we see the light at the end of the tunnel
The third wave of Covid has hit many eurozone countries, with governments grappling with new lockdowns to stem the infections, just as other economies are embarking on the road to recovery. While acknowledging the difficult situation, Lagarde said to herself optimistic that the recovery will also take place in Europe.
“You can see the light at the end of the tunnel, but it’s not yet within reach,” he said. The latest projections from the International Monetary Fund predict an EU growth to 4.4 per cent in 2021, in step with the average for advanced economies but well below the estimate of 6.4 per cent for the United States.
On the fact that both the US Federal Reserve (Fed) and the ECB have provided strong monetary support in the form of minimum interest rates, Lagarde stressed: “We are in a completely different situation. The US is likely to meet its inflation targets. pretty soon. We are very far from that. ”
The ECB guarantees “complete flexibility, if it is necessary to spend more we will do it”
The ECB’s approach to monetary policy is characterized by “complete flexibility”, therefore reiterated the ECB’s number one. “If there is a need to extend or expand Pepp further then we will“, he explained. The Pandemic emergency purchase program” is characterized by total flexibility – he added – and if necessary we will spend more, but we could also spend less because the situation improves quickly. So we will use flexibility in all its aspects “.
The eurozone has lagged behind on the vaccination front, but Lagarde hopes this will soon change. According to ‘Our World in Data’ today only 14% of those living in the EU have received at least one dose of anti-Covid serum, compared to 33.5% in the United States. Lagarde said there is a “very strong” determination to bring this number to 70% by the summer.