I urge the European Central Bank to step up its support for countries in the euro zone hit by the Covid-19 pandemic particularly those states which have experienced severe damage on both the health and economic fronts.
We might still be underestimating the economic and financial damage caused by the pandemic and I question whether the ECB has formulated worse case scenarios about what is happening and how these would be taken into account.
The Vice-President was asked what geopolitical methodology will the ECB use to determine the different magnitudes of the interventions it will be launching and how the ECB will balance a delicate line between those who need most support and those who need it less.
The countries which in sanitary terms have deployed optimal and successful medical strategies, could for that very reason, now be facing greater economic stress.
In his answers, the Vice President of the ECB said different governments are rapidly going to remove the restrictions and the economic impact of the pandemic will change. The ECB will be prepared to adjust its strategy according to developments. He stressed that there is a high level of uncertainty and not all countries have the same fiscal stance. It was difficult to forecast what will happen but economic activity could bounce back in 2021. He added that the ECB was determined more than ever to support the euro area economy and was ready to make adjustments to monetary policy measures should it see that the scale of the economic stimulus is falling short of what is needed.