Of course, there are sizable differences in financial circumstances across households. We are mindful that many lower-income families who have lost their jobs are having difficulty making ends meet. They may be dipping into their savings or taking on more debt to simply buy necessities.
These significant fiscal imbalances undermine public confidence in the sustainability of public finances, which may place an additional burden on monetary policy in maintaining price stability. As stressed by the ECB Governing Council, national governments must abide with the EcoFin Council agreement to communicate timely, ambitious and credible fiscal exit strategies as soon as possible.