Eurozone to forgo budget belt-tightening for now

Eurozone finance ministers said on Monday they would not tighten spending given the continuing pandemic in Europe, but warned that soaring debt levels would eventually have to be fixed.

Meeting by videoconference, the 19 ministers from countries that use the currency agreed that pulling back on the spending too soon could stifle a recovery.

"We're united and we're determined in our efforts to protect jobs to protect businesses and to protect our citizens in these very acute days of a continued health crisis," said Eurogroup head Paschal Donohoe, who is also Irish finance minister.

Europe, like much of the globe, has suffered a historic recession due to the pandemic. It is struggling in its vaccination campaign, which is considered the surest way to get the economy back on track.

Given the setback, as well as a wave of limited lockdowns across the continent, the Eurogroup ministers said they would "continue to protect our economy" with the "necessary level of fiscal support".

"For the time being, and as long as the acute health emergency prevails, broad fiscal measures remain necessary to protect citizens and companies," they said in a statement.

'Big mistake'

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