The European Commission on Wednesday urged eurozone countries to maintain economic stimulus policies in 2021 to support the recovery from the coronavirus pandemic and to withdraw support measures when the epidemiological and economic situation allows.
He stressed that as long as the health emergency persists, supportive fiscal policies should be maintained in all eurozone member states during 2021 and that they should be adapted to the circumstances of each country and be “timely, temporary and targeted.”
“As downside risks continue to materialize, Member States should continue to coordinate actions to effectively address the pandemic, support the economy and support a sustainable recovery,” stressed the Community Executive.
He stressed that when epidemiological and economic conditions allow it, support measures will have to be withdrawn “progressively” “in a way that mitigates the social and labor impact of the crisis.”
And he called for the adoption of policies aimed at “achieving prudent fiscal positions in the medium term and guaranteeing debt sustainability, while increasing investments.”
The EC asked the countries to implement reforms that “strengthen the coverage, adequacy and sustainability of health and social protection systems.”