ECB Executive Board member Fabio Panetta criticized that Eurozone’s fiscal response to the coronavirus pandemic has been insufficient. He emphasized, “only if all economies act with the necessary force to contain the recession will the loss in output for the entire eurozone be minimized.”
He warned, “any perception that common action is absent in times of desperate crisis would dilute public support for the European Union — an effect that is already visible in countries on the frontline of the health crisis.” And, “the threat to the single market is clear: uneven fiscal support implies that a firm’s location, rather than its business model, will be the decisive factor in determining whether it survives this crisis.”
