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ECB’s Schnabel Sees Potentially Milder Euro-Area Recession

  • Board member urges the Netherlands to back EU recovery fund
  • ECB Governing Council to decide policy next Thursday
Isabel Schnabel

Isabel Schnabel

Photographer: Alex Kraus/Bloomberg

The euro-area recession could turn out milder than expected, European Central Bank Executive Board member Isabel Schnabel said, striking a surprisingly -- if cautious -- upbeat tone about the post-pandemic prospects for the region.

Her comments in an interview with Dutch newspaper NRC Handelsblad were published just hours after the European Commission downgraded its outlook for the currency bloc. They also follow warnings in recent days from ECB President Christine Lagarde that the road ahead will be rocky, and Chief Economist Philip Lane who described the path out of the crisis as “two steps forward, one step back.”