IMF warned that the second wave of coronavirus “poses a considerable risk to the recovery” of EU’s economy, “through early 2021″. But, ” the recent promising news on vaccine development provide significant upside risk further out , as rapid and widespread delivery of safe and effective vaccines would likely spur a fast recovery”.
It added that “further support is likely to be needed” from ECB, with economic outlook “deteriorating further”. “Expanding asset purchases will be the first line of defense, but other options—including further relaxation of Targeted Longer-Term Refinancing Operations’ terms and a deposit rate cut—should also be considered.”
IMF’s “Euro Area: Staff Concluding Statement of the 2020 Article IV Mission”
