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Euro Area to Maintain Fiscal Expansion in 2022 Despite Risks

  • Commission calls for agile policy as Covid risks increase
  • EU executive tells Italy to limit its current expenditure
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JP Morgan’s Ward on Eurozone Inflation
Updated on

Euro-area governments will prioritize public spending next year as they look to cement the recovery from the Covid-19 pandemic amid increasing prices and supply chain challenges.

The euro-area fiscal stance is projected to remain expansionary through the end of 2022 as recommended by the European Commission, according to the institution’s assessment of member states’ draft budgetary plans released Wednesday and reported earlier by Bloomberg.