ECB President Christine Lagarde told the European Parliament yesterday that vaccine rollout across the Eurozone “provides the eagerly awaited light at the end of the tunnel… When containment measures are lifted and uncertainty recedes, we expect the recovery to be supported by favorable financing conditions, expansionary fiscal policies and a recovery in demand.”
Though, she also emphasized, “if we want to pave the way for a sustainable recovery, we need to maintain and strengthen the common European approach that proved so effective last year. The ECB is committed to doing its part, within its mandate.”
“Underlying price pressures are likely to remain subdued owing to weak demand, low wage pressures and the appreciation of the euro exchange rate,” Lagarde said. “Our pledge to preserve favorable financing conditions is crucial in the current environment.”
