MNI BRIEF: Eurozone Policy Mix "Well Calibrated"-Official

Eurozone policy remains “well calibrated despite easing pandemic restrictions, inflation pressures and rising geopolitical tensions, a senior EU official said on Tuesday, ahead of this weekend’s informal meeting of finance ministers’ and central bank governors in Paris.

The EU-wide policy mix was already set to be a big topic at the meeting, but Russia-Ukraine tensions will make the discussion yet more charged as many countries try to find the fiscal room to increase support for increasingly hard-pressed consumers and energy-dependent businesses.

“The challenge is to find the right sequencing for the normalisation of fiscal policy on the one hand and monetary policy on the other hand, in order to restore the necessary wriggle room for a sustainable recovery, while also paying attention to the heterogeneity of national situations,” another official close to the French presidency explained.