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Lagarde Wouldn't Be Surprised to More Fiscal Support at National Level

ECB

Question: Is the fiscal stimulus already decided enough or should govts with fiscal space still do more?

- A: GC are encouraged to see fiscal and monetary work together. Fiscal lagged behind in GFC, now its working hand in hand. Looking at budgetary submissions, the effort from members states envisaged in 2021 is on a par with 2020. In addition there is the Next Gen EU (including RRF) which is clearly in the direction of jointly addressing crisis and joint borrowing. Very much hope this continues into 2021, wouldn't be surprised if more fiscal support at national levels giving worsening conditions at the moment.

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