Euro Area fiscal policies and capacity in post-pandemic times
In-Depth Analysis
17-06-2021
The euro area response to the Covid crisis avoided a financial crisis. In the short term, the withdrawal of fiscal stimulus should be guided by unemployment, output gap and inflation data. Over the medium term, reducing public debt ratios will require maintaining the growth of primary spending below the (higher) GDP growth rate to be achieved through structural reforms. Over the longer term, creating a central fiscal capacity, strengthening the enforcement of fiscal rules in good times and completing the banking and capital market unions remain priorities.
In-Depth Analysis
External author
Carlo COTTARELLI
About this document
Publication type
Policy area
Keyword
- budgetary equilibrium
- capital markets union
- coronavirus disease
- documentation
- economic conditions
- economic governance (EU)
- economic recovery
- ECONOMICS
- EDUCATION AND COMMUNICATIONS
- epidemic
- EU banking union
- euro area
- FINANCE
- fiscal policy
- free movement of capital
- health
- monetary economics
- monetary relations
- public finance and budget policy
- redemption of public debt
- report
- SOCIAL QUESTIONS
- taxation