We estimate that, by the end of 2022, all of these measures will have increased real GDP growth in the euro area by around 1.3 percentage points and inflation by around 0.8 percentage point. Our crisis-related supervisory decisions are freeing up some € billion of bank capital which could be used to absorb losses or potentially finance up to € trillion of lending.
The European Commission and the Member States in the Council took decisive measures to support national governments, firms and workers, helping to cushion the immediate impact of the crisis (especially through three safety nets, namely the European Stability Mechanism Pandemic Crisis Support instrument, the European Investment Bank pan-European Guarantee Fund and the European instrument for temporary Support to mitigate Unemployment Risks in an Emergency (SURE), which together amount to up to € billion in loans.