• ECB: interest rates remain unchanged

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30 April 2020The Eurozone faces "an economic contraction of unprecedented size and speed in times of peace", with a GDP that this year could fall between 5% and 12% depending on the containment measures and the response of the authorities to mitigate the economic shock. The president of the ECB, Christine Lagarde, said this during the press conference following the board of directors.

The Governing Council of the ECB "is fully committed to doing everything that will be necessary, within the framework of its mandate, to support all citizens of the euro area in these difficult times", assured Lagarde, saying that the ECB expects an economic recovery of the Eurozone in 2021.

The ECB welcomes the 540 billion euro measuresagreed by the Eurogroup, ie the Sure fund, the strengthening of the EIB and the agreement on the Mes, and calls for a further "strong, timely effort to support the recovery", continued the President of the European Central Bank, explaining that the ECB "looks positively at the agreement to create a recovery fund that addresses this unprecedented crisis". And he underlines: the Governing Council of the ECB "is more determined than ever" to support the economy of the Eurozone using all the flexibility allowed in the use of its instruments.

The OMT , the anti-spread 'bazooka' that can be activated by resorting to a European stability mechanism (Mes) by a country, remains in the toolbox of the ECB but it is the 'Pepp' - the securities purchase program for the pandemic emergency - the tool designed to face the current crisis, explains Lagarde. "The way in which the returns of many bonds issued by governments have moved - he adds - reflects the actions we have taken. We have used the necessary flexibility, and we will continue to do so, believe me".

" We will not tolerate any risk of Eurozone fragmentation ." The president of the ECB said this when answering the question of whether the ECB is doing enough for Italy. Lagarde referred directly to the purchases of debt on the markets, and to the rumors that the ECB bought important sums of Italian securities: "We use flexibility in the way we use Pepp, as you have just noticed", he replied referring to the program of purchases for the pandemic emergency.

"On behalf of the entire Eurosystem and the ECB, I want to emphasize once again that this is a global health crisis and the top priority must be to save lives and prevent the spread of the disease", concluded Lagarde, adding: "Since our last conference on March 12, another 3 million people were infected with the coronavirus and 1/3 in the Eurozone. We must remember that every death is a tragedy for those who remain and we want to express our solidarity and condolences to those who suffer in this moment "but" also to express our deep gratitude to all those, from doctors to nurses, who are at the forefront of the fight against this virus and who risk their lives ".