ECB’s Mersch: Interview with Financial Times

How much does the second wave of coronavirus infections and lockdowns darken the eurozone economic outlook? Governments have learned very rapidly with this pandemic and the recent set of lockdown measures have been much less growth-damaging and much more targeted so the fallout might be mitigated. We also have an extension of the support measures that have been very helpful with the first lockdown and the fiscal response also has to be factored in. What we can see right now is that there is an increase in fragmentation, insofar as we have a divergence between the services sector and the manufacturing sector. That … (full story)

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