Christine Lagarde, Head of the European Central Bank, is confident that the coronavirus will hit the European economy much harder than thought
For example, she is convinced that the new restrictions imposed by the pandemic are increasing economic uncertainty, highlighting the need to continue implementing lightweight fiscal and monetary policies.
“It is clear that both fiscal and monetary policy support must remain in place for as long as necessary”, – said Lagarde.
Meanwhile, the EU economy could shrink by 8-12% this year. Early projections of 5% are no longer relevant.