Against this backdrop, the current calls for a particularly loose application of the European Union’s framework of fiscal rules questions the credibility of politicians’ commitment to sound public finances. In this environment, there is a clear risk that any additional stimulus programme may erode, rather than restore, public confidence.
Even without measures the economy will be hit. It is therefore of the essence that everybody contributes to containing the virus. That is in the interest of our health, but also in the interest of the economy.   An important – and positive – observation is that the financial system has so far proven resilient.