Public Finances in the EU in the Wake of Covid-19 Pandemic

Source: International Monetary Fund Fiscal Policy Responses to COVID-19, January 2021
Source: Author’s own elaboration based on data available at Eurostat.
Source: Author’s own elaboration based on data available at Eurostat.
Source: Author’s own elaboration based on data available at Eurostat.
  • limited ability to implement counter-cyclical fiscal policy during economic crisis;
  • decreased ability to respond to unexpected events, like wars, financial crises, and natural disasters which could result in larger negative effects on the economy and on people’s well-being;
  • private sector under-investment due to uncertainty about future taxes and crowding out of private debt.

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