BRUSSELS—Euro zone finance ministers agreed on Monday to tighten fiscal policy a little next year after three years of pumping billions into the economy due to the coronavirus pandemic, but also to be ready with more cash should the war in Ukraine make it necessary. “The fundamentals of the euro area economy are strong,” the ministers from the 19 countries sharing the euro said in a statement after regular talks. “[…] the uncertainty [in the euro area economy] has increased significantly. The economic impact of Russia’s war against Ukraine is yet to be determined and adds to risks stemming from ongoing supply chain problems, higher energy prices, and inflation remaining elevated for longer than previously expected,” the ministers said. The Commission, the EU’s executive, recommended on March 2 that EU governments should move to a neutral fiscal stance next year from a supportive stance now as the economy is growing …
Euro Zone to Tighten Fiscal Policy in 2023, But Ready to Reverse Amid Ukraine War
March 15, 2022
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