The second wave of coronavirus infections and lockdowns poses “a considerable risk” to the eurozone economy, the IMF has warned, adding that recent progress on vaccines will not deliver a recovery in the near future.
The gloomy short-term outlook means the bloc needs more support from both fiscal and monetary policy, the fund said in a report on the conclusions of its latest official visit to the eurozone.
The EU might need to provide “solvency support” to businesses, the IMF said, and it called on the European Central Bank to consider “direct support” to companies if bank lending started to dry up.
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