Eurogroup Finance Ministers Warn Against Premature Withdrawal Of Financial Support
Eurozone Finance Ministers agreed yesterday that respective Member States will ensure that until the health crisis is over and recovery is firmly underway, they will continue to protect economies through the deployment of the necessary level of fiscal support.
“Supporting economic activity and mitigating scarring effects through timely, temporary and targeted measures is key to longer-term fiscal sustainability. Premature withdrawal of fiscal support should be avoided”, the Ministers said in a statement.
The Eurogroup is committed to a supportive stance in the euro area in 2021 and in 2022, also taking into account the fiscal stimulus stemming from the RRF. Ambitious reforms and productive investment, supported by the RRF, are key to increase growth potential in the medium-term. The Eurogroup noted the Commission’s preliminary indication that the general escape clause will continue to apply next year.
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