Economics
Europe Urged to Prepare Exit From $2.9 Trillion in Covid Help
- Governments shouldn’t keep aid going for too long, ESRB says
- Report may feed into euro-area debate on fiscal policy
Photographer: Cyril Marcilhacy/Bloomberg
This article is for subscribers only.
European governments must find the right moment to wean the economy off unprecedented crisis support so they don’t harm growth in the long run, financial supervisors warned.
While a wave of liquidity stabilized lending and kept businesses and households afloat during the virus shutdowns, extending such stimulus for too long could complicate its removal and make an eventual restructuring more painful, the European Systemic Risk Board said in a report Tuesday.