In this respect, it is the task of fiscal policy to make its contribution to enhancing the growth potential of the euro area by maintaining sound fiscal positions and helping to reinforce the proper framework for the functioning of a market economy. It is also important that fiscal policy maintains a medium-term orientation throughout the economic cycle.
Concretely, this means that, by the third quarter of this year, we foresee a recovery of almost half of the losses in economic activity incurred since the start of the pandemic, with activity subsequently climbing gradually and reaching pre-pandemic levels only towards the end of 2022.