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Among major economies, the Eurozone has been done the least in terms of government stimulus spending.
Even at the level of the member states, stimulus spending has been comparatively low.
We’re still waiting on an agreement on the first stimulus spending program on the Union level. And at €750B, it’s relatively small as a percentage of GDP compared to other countries.
So, stimulus in the Eurozone has relied largely on support from the ECB.
We are heading into the winter with extended periods of lockdowns still expected until the vaccines are available.
Retailers are struggling after being forced into closures during key shopping months ahead of holidays. There are also increasing calls for authorities to do more to support the economy during the upcoming months.
All this is likely to fall on Lagarde’s shoulders at the last meeting for the ECB this year.
What We Are Looking For
There is a unanimous consensus that the ECB will keep rates where they are. That’s not...
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