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.
On behalf of the whole of the Governing Council of the ECB, I reiterate that the countries of the euro area should make appropriate use of the important leeway that the Pact currently gives several countries in terms of fiscal policy. However, those countries that have modest leeway or no leeway at all should respect the Pact as it stands.