MNI BRIEF: Dombrovskis: EZ Econ In Soft Patch; Price Pressures

price pressures in the euro zone are becoming more broad based and that the euro zone economic recovery is going through a “soft patch”, EU Executive Vice President Valdis Dombrovskis said Monday. Speaking to the EU Parliament’s Economic and Monetary Affairs Committee, Dombrovskis said fiscal policy should remain moderately supportive this year and said the medium-term outlook for the euro zone economy was still positive.

Nevertheless, recent data did show the recovery facing “a loss of momentum”.

The Commission will publish its Winter Forecasts on Thursday this week and would show that in 2022 the euro zone economy continuing to recover from the Covid crisis. EU Economic Affairs Commissioner Paolo Gentiloni told the committee that a “premature withdrawal of policy support” would undermine the strength of economic expansion and said policy should be gradually shifted to support of public investment in green and digital transitions.