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Lagarde: Measures Are a Risk to Economic Recovery

European Central Bank (ECB) President Christine Lagarde said that the measures taken within the scope of the coronavirus (Covid-19) outbreak are a risk to economic recovery.

Lagarde: Measures Are a Risk to Economic Recovery
Yazar: Eylem Özer

Yayınlanma: 6 Ekim 2020 22:40

Güncellenme: 5 Kasım 2024 19:06

Lagarde: Measures Are a Risk to Economic Recovery European Central Bank (ECB) President Christine Lagarde said that the measures taken within the scope of the coronavirus (Covid-19) outbreak are a risk to economic recovery.   Calling on governments not to end their financial support anytime soon, Lagarde said:
“We clearly saw a recovery in late spring and early summer, but now we fear that the coronavirus measures that have to be taken by the authorities will have an impact.”
Emphasizing that the situation of France and Spain seems very serious, Lagarde said, "We are afraid that this is the second branch of the V, instead of the V shape (recovery) we all long for and hope. '' On the other hand, Lagarde said that the ECB has successfully completed the financial measures and that the risk of the "cliff effect" that could result from the sudden cessation of support by governments is the biggest concern for him. According to many economists, the ECB's 1.35 trillion euro ($ 1.6 trillion) emergency bond purchase program will likely be expanded at the meeting in December when new economic forecasts will be announced. In addition, Lagarde emphasized that the central bank is ready to use all tools when necessary.
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