Economics
ECB Says Euro Area Still on Shaky Ground as Economy Reopens
- Coronavirus pandemic has exacerbated pre-existing risks
- Financial Stability Review cites debt, fragile banks, markets
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The euro-area economy is still facing severe threats even after policy makers took unprecedented measures to tackle the coronavirus pandemic, according to the European Central Bank.
The deep recession has exposed new risks to the financial system and exacerbated pre-existing ones, the ECB said in its Financial Stability Review. That stress on banks could hamper their ability to support the economic recovery.