Economics

Panetta Says ECB Is Ready to Expand Pandemic Buying If Needed

  • Euro-area needs faster growth to overcome debt, he says
  • Executive Board member says 2021 will be a ‘pandemic year’
An illuminated euro currency symbol is projected on to the European Central Bank (ECB) headquarters during the Luminale light festival in Frankfurt.Photographer: Martin Leissl/Bloomberg
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The European Central Bank is ready to boost its emergency bond-buying program if needed, Executive Board member Fabio Panetta said one day after Germany announced a hard lockdown in response to a surge in coronavirus cases.

The 2021 will likely be a “pandemic year” with high uncertainty and widespread vulnerabilities among companies and households, the Italian told a conference on Monday. Monetary and fiscal policy need to remain accommodative for an extended period of time, he added, calling on governments to focus on investments to boost growth.