The ECB Needs Italy and Spain to Help Themselves
Christine Lagarde still has several tricks up her sleeve, but Europe's national governments need to step up too.
It’s an uphill battle for economic recovery.
Photographer: Francesca Volpi/BloombergThe European Central Bank’s governing council meets this week amid a less optimistic mood than before the summer break. The recovery in Europe is losing speed and there are early signs of divergence, with some euro-zone countries rebounding faster than others.
ECB President Christine Lagarde still has several tricks up her sleeve to help the monetary union respond to the pandemic’s economic shock. But, unlike previous crises in Europe, governments will have to take the lead this time. Unfortunately the response from individual countries is mixed so far: Some, like France, have already put together ambitious plans to relaunch their economy. Others, such as Italy, are struggling to rise to the challenge.