ECB Executive Board member Isabel Schnabel warned in a Der Spiegel interview, “it would be an economic disaster for Europe if the disbursement of the funds were to be delayed indefinitely.” She referred to the EUR 750B EU pandemic response stimulus. The ratification of the measures is temporarily blocked in Germany. “If that were the case, Europe would have to think about alternative solutions, but that could take some time.”
Regarding surging stocks and real-estate markets, Schnabel also warned, “the risks of a correction are increasing, especially if the economic recovery falls short of expectation.”
Separately, Vice President Luis De Guindos said he saw the risk of “negative feedback loop between companies, banks and sovereigns.” He warned that withdrawal of stimulus must be “careful”.