MNI: Eurozone Mulls Shift To Targeted Fiscal Stance-Source

Eurozone finance ministers will monitor economic data and the development of the pandemic over the summer as they grow increasingly confident of being able to agree a withdrawal of blanket pandemic fiscal support measures in favour of a more selective approach targeting certain sectors towards the end of the year, a source close to the Eurogroup told MNI.

"Summer will tell us where we are in terms of dealing with the pandemic, then September and October are the two months when something will probably start happening," the official said. "We are not exactly at this point yet, but we are moving quite close to it."

A wary eye is being kept on the spread of new variants, the official added.

GROWING WILLINGNESS TO REVIEW STANCE

Eurogroup finance ministers met in Brussels this week and decided not to change the last milestone fiscal advice issued to member states back in March for fiscal policies to remain highly supportive for the time being.

"There is a growing willingness to revisit the fiscal stance in view of the latest developments," the source said, pointing to September or October as the appropriate point to do so.

Following stronger-than-expected growth data and rising inflation, the coming months will be rich in terms of developments which could have a significant economic impact, including the implementation of the EUR750 billion Next Generation EU Covid aid plan, with 12 states set to receive big pre-financing disbursements by the end of this month.

"There's a lot of things going on and the economic landscape is quite different from way it was a few months ago," the official said.