National fiscal policy measures continue to be the first line of defence to secure employment and safeguard the survival of productive firms. These emergency measures should be as targeted and temporary as possible. The three safety nets agreed at the European level complement national efforts, with up to € billion of additional funding support being made available for workers, companies and sovereigns.
An ambitious and coordinated euro area fiscal stance remains critical to support the recovery. The recovery fund (under the “Next Generation EU” umbrella) agreed by the European Council in July will provide much-needed further macroeconomic support and build a ramp towards a modern, green and digital European economy.