Friday, 9 May 2025
No Result
View All Result
eudebates.tv
  • EU Policies
  • World
  • Special Debates
  • Events
  • Vote & Polls
eudebates.tv
No Result
View All Result

US Biden plan stimulus for Recovery will impact EURO area

EUdebates Team by EUdebates Team
12/03/2021
in Economy
Reading Time: 4 mins read
0
138
SHARES
1.4k
VIEWS
Share on FacebookShare on Twitter
ADVERTISEMENT

Join EU debates

Eurogroup: Inflation pressure is temporary but economic recovery on hold

How the pandemic caused global economic crisis and changed the world

No winners but fewer losers in global economy from COVID than expected

Strengthening the EU currency and the international role of the euro

US Biden plan of $1.9tn stimulus programme will boost the US recovery, it will drive global recovery and it will have an impact in euro area. Biden’s Rescue Plan of 1.6 trillion euros for combating the Covid crisis passed by the US House of Representatives and signed into law by US President Joe Biden. is one of the biggest economic stimulus programmes of all time. Europen Central Bank hopes the plan will have a positive impact on this side of the Atlantic.

OECD: American Rescue Plan will drive a global recovery

The interim economic projections for the G20 countries show that the world economy will recover from the record losses in 2020. World’s major economies are GDP – OECD Growth forecasts for 2021 have now become more favorable compared to the forecasts from last December.

ECB President Christine Lagarde said at a press conference on Wednesday:

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.

EU fiscal rules and the way out of the pandemic

euro money boat

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.

Grants and loans: What the Recovery EU money will be invested in

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.

US Biden’s stimulus will affect the whole world

Now, obviously staff here at the ECB have been very diligently looking at the Biden plan and trying to assess on a very preliminary basis what the impact will be on both growth through the trade channel in particular, and also on the inflation expectations and particularly on the inflation outlook. There will be some impact, it’s pretty clear.

That will be reflected in future projections because this has not been taken on board this time around. I think they also want to have a look very carefully at what is eventually delivered after the signing into law of what has been voted by the House of Representatives.

eudebates US Biden plan impact

Share this debate with your friends!
Follow #eudebates on Google News and on Facebook
Tags: Banking SupervisionBanking UnionBanksChristine LagardeECBEconomic CrisisEconomic GovernanceEconomic Governance EuropeEconomic GrowtheconomistEconomyEuropean Central BankeurozoneFinance and bankingGlobal BankingInflationJoe BidenOECDOrganisation for Economic Co-operation and DevelopmentPresident BidenRestoring Economic GrowthUSAWhite House
Share55Tweet35

Related EU debates

Christine Lagarde, President of the European Central Bank with Eurogroup President Paschal Donohoe
Economy

Eurogroup: Inflation pressure is temporary but economic recovery on hold

22/05/2021
Economy EU-Budget
Economy

How the pandemic caused global economic crisis and changed the world

13/05/2021
Containers Imports Exports Trade harbor
Economy

No winners but fewer losers in global economy from COVID than expected

01/04/2021
500 euros money printing
Economy

Strengthening the EU currency and the international role of the euro

25/03/2021
Money Invest Green
Economy

InvestEU programme adopted for strategic and innovative investments

15/03/2021
sustainability Green Climate policy
Economy

ECB Green monetary policy and Climate change

14/03/2021

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

SOTEU 2022 - State of the Union speech

Watch State of the Union live: Ursula von der Leyen gives 2022 address #SOTEU

14/09/2022
Volunteers preparing food for Ukrainian refugees arriving at Berlin Central Station

EU steps up solidarity with refugees fleeing Ukraine

08/03/2022
pump jack oil diesel

REPowerEU to get rid of the dependencies of Russian fossil fuel

08/03/2022
Ursula von der Leyen President of the European Commission

EU sanctions against Russia following the invasion of Ukraine

26/02/2022
Finnish PM Sanna Marin

Finland: NATO membership ‘will change’ after Russian invasion

24/02/2022
NATO - EU joint Press Conference

EU responds to Russia’s invasion of Ukraine with massive sanctions

24/02/2022
  • Social Media Facebook twitter

    DeleteFacebook? What is the best Facebook european alternative?

    268 shares
    Share 107 Tweet 67
  • Travelling in Europe with COVID19 country colour travel code zones

    238 shares
    Share 95 Tweet 60
  • Why don’t Mediterranean boat migrants take the plane? Why don’t refugees fly?

    222 shares
    Share 89 Tweet 56
  • EU nasty and vindictive? Nigel Farage criticizes EU vaccines strategy

    202 shares
    Share 81 Tweet 51
  • Burkini Debate: To Ban or Not to Ban the Burkini, Burka and Niqab in EUROPE?

    193 shares
    Share 77 Tweet 48

Join eudebates newsletter!

Enter your email to receive our newsletter.

Don't worry, we don't spam
eudebates_logo

Follow us on social media:

Recent News

  • Watch State of the Union live: Ursula von der Leyen gives 2022 address #SOTEU
  • EU steps up solidarity with refugees fleeing Ukraine
  • REPowerEU to get rid of the dependencies of Russian fossil fuel
  • EU sanctions against Russia following the invasion of Ukraine
  • Finland: NATO membership ‘will change’ after Russian invasion

Newsletter

Join eudebates newsletter!

Enter your email to receive our newsletter.

Don't worry, we don't spam
SOTEU 2022 - State of the Union speech

Watch State of the Union live: Ursula von der Leyen gives 2022 address #SOTEU

14/09/2022
Volunteers preparing food for Ukrainian refugees arriving at Berlin Central Station

EU steps up solidarity with refugees fleeing Ukraine

08/03/2022
pump jack oil diesel

REPowerEU to get rid of the dependencies of Russian fossil fuel

08/03/2022
  • Home
  • EU Policies
  • Special Debates
  • Events
  • Vote & Polls
  • Video

© 2022 eudebates - EU debates, dialogue, communication for a better Europe - Privacy Policy.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • EU Policies
  • World
  • Special Debates
  • Events
  • Vote & Polls

© 2022 eudebates - EU debates, dialogue, communication for a better Europe - Privacy Policy.

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. Visit our Privacy and Cookie Policy.