MNI BRIEF: Eurogroup Push Back On 'Unfair' Fiscal Comparisons

The Eurogroup will issue a robust defence of the zone's pandemic fiscal response measures following its meeting Friday, pushing back against what they see as 'unfair' comparisons with the US Stimulus plans, EU sources indicated. The push back follows recent IMF and G7-G20 meetings and some international criticism that the EU is still not using the full fiscal space available to it and some of its plans, including the EUR750 billion EU/Next Gen plan are too slow coming on tap.

"This is an opportunity to really make the case for the EU efforts and say that it is up to the challenge and point out that we are on track to make a smooth transition from public fiscal support to a situation where private sector demand can take over," the source noted.

Eurogroup President and Irish Finance Minister Pascal Donohoe is likely to point out that while the US fiscal effort, at 10% of GDP, compares with 8% of GDP in the EU27 and 19% of GDP in liquidity support, as well as underscore the larger role played by automatic stabilisers in EU economies.