ECB: “First signs of growth in the third quarter” | Financial

According to De Guindos, it may take up to 2021 for the “real recovery” to begin. But it already anticipates the first signs of growth in the third quarter of this year.

Support package

“Now that all measures are in place, Europe is better equipped to respond to this unprecedented crisis,” said the head of the ECB. The central bank recently launched a € 750 billion emergency package in response to what is likely to be the worst eurozone crisis in decades.

The Guindos said government spending to counter the impact of the virus will lead to increased financing needs. He said about an amount between € 1 billion and € 1.5 billion. Quantities in an order of magnitude that, according to the Spanish, had never been shown before.

It also rated debt levels in the euro area as sustainable, despite the increase in debt issuance. In his opinion, the ECB’s actions aim to avoid fragmentation, because governments want to finance as necessary. According to him, the scenarios in which debts would be a problem are out of the question.