The Commission, the EU’s executive arm, reckons that fiscal support worth around 8% of GDP was provided in 2020, far more than during the financial crisis of 2008-2009.
“There is hope on the horizon for the EU economy, but for now the pandemic continues to hurt people’s livelihoods and the wider economy,” Commission Executive Vice-President Valdis Dombrovskis said Wednesday.
Ad“To cushion this impact and to promote a resilient and sustainable recovery, our clear message is that fiscal support should continue as long as needed.
Based on current indications, the general escape clause would remain active in 2022 and be deactivated in 2023,” Dombrovskis said.
The decision to extend the general escape clause is a sign of just how uncertain things are.