ECB to introduce stimulus package anew
The European Central Bank will introduce a new stimulus package on Thursday to aid the bloc rise up from coronavirus pandemic recession. The stimulus package aims to support the EU’s path to economic recovery until a coronavirus vaccine is released to the public.
Though details of the package remain to be completed, the package is sure to bring borrowing costs close to zero for years in order for governments and private companies to spend amidst the biggest recession known in recent memory.
However, imposing a fresh stimulus package will entail a challenge for ECB to balance an expanding range of short-term risks versus enhancing long-term goals.
This is on top of the current dilemmas the bloc is facing – a possible no-deal Brexit, a lingering second wave of coronavirus spread, and a political deadlock over the European Union’s 750 billion euro ($908 billion) recovery fund.
Meanwhile, the EU’s economy recovered surprisingly swiftly after the first wave of coronavirus lockdowns. This implicates new economic projections pointing to lessened growth in 2021 but better prospects in 2022.