ECB chief economist: pandemic greatest threat to economy

ECB, about dts
ECB, about dts
The chief economist of the European Central Bank, Philip Lane, sees the corona pandemic as the greatest threat to the European economy.

“It needs to be brought under control. We depend on a healthy population and a healthy economy, ”he told the RTL / n-tv editorial team.

The risks are far greater than those emanating from the US election or Brexit. Lane praised the Federal Republic's response to the pandemic. "Germany is a leader in containing the virus," said Lane. The federal government reacted powerfully - for example by supporting short-time work. Germany has done a lot to ensure that not only the German but also the European economy recovers. Europe is at a crucial stage, Lane said. If we succeed in containing the spread of the virus in the coming weeks, "then we can expect the European economy to continue its recovery". The recovery process will then continue into the year after next. Therefore, the ECB is sticking to its forecasts for economic development. However, if the virus is not contained, “we have to prepare for worse scenarios”. It is too early to talk about possible reactions from the ECB to a worsening economic situation, Lane added. "Let's wait and see if the measures taken by the local authorities work." One thing is certain, however: "Nobody should assume that the ECB is short of ammunition," said the ECB chief economist.