Biden plan is actually going to have an impact on EURO area
- 3 years ago
Now, on the issue of the massive fiscal stimulus that is likely to be signed into law probably today and will give, knowing the Treasury head Yellen, the efficiency that she has I'm sure that there will be immediate implementation. https://www.eudebates.tv/debates/eu-policies/economy/us-biden-plan-stimulus-for-recovery-will-impact-euro-area/ The answer to your question is no. Because of rules that many of you are familiar with, until a piece of legislation is voted, we cannot take that into account.
#eudebates #ECB #Lagarde #NextGenerationEU #MFF #EUbudget
So, it was voted yesterday. It will be moving into law tomorrow. Hence, it is not embedded in our projections, but we do - and the introductory statement makes reference to the external demand, to the impact that a massive fiscal stimulus will have on our pace of growth that it will have on trade of course. So, we believe that the Biden plan is actually going to have an impact, not to be overestimated though, because clearly there will be a lot of domestic measures that will impact predominantly the US domestic markets, but it will have an impact. An external demand that is addressed to the euro area and to other countries of course will generate probably and will have an impact on our growth projections, and that will indeed be reflected in three months' time when we produce our June projections.
One thing that I will say is that the big difference if you will between the Biden stimulus, which as I said, debated, voted by the two houses, signed into law, cheques in the mail and our massive fiscal stimulus here in Europe is that there is a bit of a lag time between the two. The Next Generation EU, as we say in the introductory statement, is critically important in order to help stimulate the European economies from a fiscal point of view and is also terribly important for two other reasons: because it needs to address the issue of heterogeneity between countries and between sectors, and it needs to focus on what will be productivity enhancing and moving our economies and our Europe into the future with the focus on digital and green. But there is a time lag between the two, let's face it. So, while we import a bit of yield increase, the trade movements are going to come, but our own fiscal measures are not kicking in yet. And we need that.
https://www.eudebates.tv/ #eudebates
#eudebates #ECB #Lagarde #NextGenerationEU #MFF #EUbudget
So, it was voted yesterday. It will be moving into law tomorrow. Hence, it is not embedded in our projections, but we do - and the introductory statement makes reference to the external demand, to the impact that a massive fiscal stimulus will have on our pace of growth that it will have on trade of course. So, we believe that the Biden plan is actually going to have an impact, not to be overestimated though, because clearly there will be a lot of domestic measures that will impact predominantly the US domestic markets, but it will have an impact. An external demand that is addressed to the euro area and to other countries of course will generate probably and will have an impact on our growth projections, and that will indeed be reflected in three months' time when we produce our June projections.
One thing that I will say is that the big difference if you will between the Biden stimulus, which as I said, debated, voted by the two houses, signed into law, cheques in the mail and our massive fiscal stimulus here in Europe is that there is a bit of a lag time between the two. The Next Generation EU, as we say in the introductory statement, is critically important in order to help stimulate the European economies from a fiscal point of view and is also terribly important for two other reasons: because it needs to address the issue of heterogeneity between countries and between sectors, and it needs to focus on what will be productivity enhancing and moving our economies and our Europe into the future with the focus on digital and green. But there is a time lag between the two, let's face it. So, while we import a bit of yield increase, the trade movements are going to come, but our own fiscal measures are not kicking in yet. And we need that.
https://www.eudebates.tv/ #eudebates