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UK Meltdown Helps Lagarde Make the Case for Targeted Fiscal Help

  • ECB is urging governments to focus support on the poorest
  • Lagarde says that too many people are getting energy aid
Christine Lagarde
Christine LagardePhotographer: Alex Kraus/Bloomberg

If European governments aren’t convinced by warnings from European Central Bank President Christine Lagarde that excessive fiscal stimulus can cause serious damage, she might invite them to consider the UK.

As governments across the euro area prepare for a brutal winter of energy shortages, Lagarde has been urging them to focus financial support on the most vulnerable families. But the bloc’s biggest economies have instead preferred broad-based measures that hold down bills for everyone.