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Euro Area’s Record Slump Adds Urgency to Fiscal Aid Calls

  • Euro-area economy shrinks 3.8% and worse may be ahead
  • Governments are haggling over how to fund crisis response

Photographer: Stephane De Sakutin/AFP via Getty Images

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The euro-area economy plunged into a record contraction, an outcome that will only add more urgency to controversial demands for joint government fiscal support.

Output in the 19-country region shrank 3.8%, reflecting shutdowns to contain the coronavirus that have pushed businesses close to collapse, sent unemployment surging and forced governments to unleash billions of euros in emergency stimulus.