ECB announces increased support for European economy amid Covid-19 resurgence

ECB President Christine Lagarde, March 12, 2020 (illustrative image).

REUTERS / Kai Pfaffenbach

Text by: RFI Follow

2 min

The European Central Bank said on Thursday that it was preparing to beef up its measures to support the economy by the end of 2020. The second wave of Covid-19 indeed darkens hopes of recovery.

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" 

New cases of Covid-19 are increasing all over Europe,

 " admitted Christine Lagarde, President of the ECB.

After giving positive signs in the third quarter, activity could be very weak at the end of the year.

Continue to support the economy

Faced with the deteriorating situation, the ECB does not have much room for maneuver.

However, Christine Lagarde opens the door to action in December.

" 

We are not going to sit idly by, we are going to recalibrate the instruments we have,

 " she insisted.

In addition, the Central Bank undertakes to continue its purchases of securities on the market as part of the emergency purchasing program in the face of the pandemic, the total envelope of which was increased in June to 1350 billion. euros.

The objective is to maintain an ultra-accommodating stance in monetary policy to support the economy, but also to prevent the risks of a recovery that is too heterogeneous from one country to another in the Union.

►Also read: Decryption - ECB aid: showdown between Germany and the European Union

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  • Economy

  • BCE

  • European Union

  • Christine Lagarde

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