Euro zone ministers vow to extend fiscal support until 2022

Finance ministers of the euro zone were one to pledge continued fiscal support until 2022 in an effort to lift the common currency area to rise up from the coronavirus crisis. They also said that they would take care of the increasing debt only once the economic rebound starts.

The eurogroup said the fiscal support which is currently 8% of euro zone gross domestic product in national fiscal measures and 19% of GDP in liquidity measures, or more than 3 trillion euros ($3.58 trillion) in total, would be retained so long as the coronavirus drag is there.

The Recovery and Resilience Facility (RRF) is worth 672.5 billion euros in loans and grants to be borrowed jointly by the EU.

The economy of the entire euro zone shrank 6.6%in 2020, posting its worst recession record so far. The bloc’s public support has aided many firms to survive during this pandemic.

The eurogroup expects a 3.8% growth this 2021 and 2022, but the public debt will hit more than 100% of GDP on average in the 19 countries sharing the euro.