ECONOMY

Relaxed fiscal policy for next year too, says Eurogroup

relaxed-fiscal-policy-for-next-year-too-says-eurogroup

Friday’s informal Eurogroup meeting confirmed that the fiscal rules for eurozone members will also be relaxed next year, offering Greece and other countries some much-needed leeway in order to contain the economic effects of the coronavirus pandemic.

New Eurogroup President Paschal Donohoe said there will be no sudden end to the European fiscal measures to support the euro area’s economy so that they can continue supporting economic activity, following a consensus at the Eurogroup.

European Central Bank head Christine Lagarde said the eurozone will return to pre-crisis economic growth by end-2022.