Policy synergy still faces tough challenges in handling Covid-19 amid the outbreak of new variants, thus impacting domestic demand that has not fully recovered. Several factors have become challenges to accelerating domestic demand and the economic recovery. First, the relatively limited global supply and distribution of vaccines has hampered efforts to accelerate the vaccination roll out as a prerequisite for economic recovery.
In this regard, Europe has not stood idly by. Many vulnerabilities still need addressing, however. It is imperative that we heed the lessons of Russia's aggression and its war in Ukraine, especially in the energy and financial sectors. It is telling that since February 2020, Google searches for 'resilience' have risen to new highs and have stayed elevated ever since.