The European Fiscal Board believes that an expansionary fiscal stance at the euro area level for 2022 is “appropriate” given the uncertainties related to the evolution of the Covid-19 pandemic, in a report published on Wednesday 16 June (EUROPE B12678A5).
This is made possible by the persistence of excessive public deficits with no regulatory consequences for euro area countries combined with the ramping up of funding via the Next Generation EU Recovery Plan.
However, “the challenge...