Economics
ECB Pushes Governments to Keep Up Fiscal Support for Economy
- Lagarde says her biggest concern is fiscal aid ends too early
- Schnabel argues governments shouldn’t worry about rising debt
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European Central Bank top officials amplified their call on governments to keep supporting euro-area economies as they recover from the coronavirus slump, warning against prematurely removing aid.
Speaking on Monday, President Christine Lagarde said her biggest concern right now is that measures such as debt moratoria, state guarantees and furlough schemes are phased out too abruptly. Executive Board member Isabel Schnabel argued separately that European governments shouldn’t start worrying about rising debt levels, and Vice President Luis de Guindos said fiscal policy must be the first line of defense.