Eurozone proves out to be the most vulnerable patient of the pandemic, as the economy is still being severely battered, and even worse now that the second wave of the pandemic is unforgivable and leads to many local lockdowns.
ECB and Christine Lagarde, witnessing this situation and considering how crucial it is, decide to act rapidly and in this first stage ECB will buy €500 billions more of European governments’ pandemic bonds. Analysts are certain that Christine Lagarde will announce or at least confirm that there will be more support measures for the european economy.
Local lockdowns, restaurant shut- down and travel restrictions have affected quite a lot the european economy, which has lost momentum, and now the fear of a double- dip recession is visible. Christine Lagarde herself stated that the second wave came sooner than expected and out of the sudden, but the decision has already been taken for a broad safety nest to be provided, in order to prevent an economy retreat and also capitalize the positive outcome of the efforts during the first outbreak of the pandemic.
According to analysts, ECB does not seem to hurry to take any final decisions and is waiting for November’s macroeconomic data first, but in any case, a complete plan for the next support package will be ready to be implemented. The first support package is yet to bet extended for another six months.