The Covid-19 pandemic continues to cast a dark shadow over Europe. The health and economic crises are reflected in exceptionally weak forecasts for the economic growth in 2020.
These forecasts show a marked deterioration compared to the forecasts before Covid-19, but also compared to the early forecasts after the outbreak. The projected real GDP growth for 2020 fell by an average 9% of GDP from 2% growth before the Covid-19 outbreak to a 7.5% decrease according to the latest forecasts.
Since the Covid-19 outbreak, all European countries have taken fiscal measures to address the health crisis and limit the adverse impact on the economy. The 25 countries covered in this European Fiscal Monitor (EFM) have committed around EUR 1 trillion or a total of around 7% of GDP in discretionary fiscal stimulus, and injected nearly EUR 2 trillion, or about 14% of GDP into liquidity measures. The amount of new fiscal measures has slowed down in the past three months since the last EFM in June, but the amounts announced over the summer are still substantial.
This European Fiscal Monitors gives an overview of the activities of EU IFIs and fiscal measures adopted in 24 EU member states and the UK up to September 2020. The monitor is based on a survey among EU IFIs.
Read the new issue of the European Fiscal Monitor here
The results of the Survey of Network's Members on fiscal measures adopted in response to Covid-19 are available here
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