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European Central Bank Vice President: Good prospects for a recovery in the second half of the year

European Central Bank Vice President: Good prospects for a recovery in the second half of the year

May 03, 2021, 12:35 pm

Frankfurt / Main (dpa) Despite a weak start to the year, European monetary authorities are optimistic about the near future. The main focus is on vaccination.

European Central Bank in Frankfurt am Main at dusk (shot of intentional camera movement during exposure).

Despite a weak start to this year, European monetary authorities continue to count on the recovery of the euro economy in the second half of 2021.

“The first quarter was weaker than we expected three months ago,” European Central Bank Vice President Luis de Guindos told the Italian newspaper La Repubblica (Monday).

On the other hand, it is good for the economy that vaccinating the population against Coronavirus is making incremental progress. “We find elsewhere that the situation is quickly returning to normal once vaccinations accelerate – as is the case in the United Kingdom, Israel or the United States.” So the European Central Bank continues to assume that the economy in the eurozone will grow by about 4 percent this year.

“If, by speeding up the vaccination campaign, we succeed in vaccinating 70 percent of Europe’s adult population by the summer and the economy gains momentum, we can also consider letting the monetary policy emergency situation end,” de Jindos said.

In combating the economic consequences of the Coronavirus, the European Central Bank has launched a particularly flexible program of purchasing government bonds and corporate securities. The Pandemic Emergency Purchase Program (PEPP) now stands at 1.85 trillion euros, according to the current planning of the Central Bank until at least the end of March 2022. The aim is to reverse emergency measures “gradually and significantly. Caution,” de Guindos emphasized. Otherwise, we risk delaying the recovery. “

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