Economics

Bruised Eurozone Seen Getting Biggest Fiscal Boost in Decade

  • Morgan Stanley estimates a 2019 impulse of about 0.6% of GDP
  • Budget constraints in Italy, France limit stimulus scope
Photographer: Krisztian Bocsi/Bloomberg
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The euro-area economy looks poised to get some lift from what once helped to push it into crisis: government spending.

The bloc, at risk of splintering half a decade ago due to over-indebtedness, is now battling the headwinds including trade protectionism at a time when the European Central Bank has little room to lend a hand. With more and more reason to worry about the economy, a prop from additional public spending provides some relief.