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The euro zone is recovering well and recovering faster than expected despite the outbreak of a new variant of the Covid virus in Europe, Eurogroup Chief Paschal Donohoe said Monday at a joint press conference with French Finance Minister Bruno Le Maire.

Donohoe said that the recovery would continue to face new challenges from the pandemic, adding that this was the reason why EU finance ministers had put in place fiscal policies that would support employment, growth and recovery through 2022.

Le Maire said France would continue to be “very vigilant” in monitoring the impact of the new wave on sectors like tourism and air transport and conceded that the new variant would pose “economic complications and difficulties.”