The COVID Health Crisis and the Fiscal and Monetary Policies in the Euro Area

This paper explains the economic policy developed in the euro area to manage the economic effects induced by the COVID health crisis. First, an overview of developments in the euro area is presented. It then explains the fiscal decisions taken by member countries, as well as the monetary policy pursued by the European Central Bank. The final part reflects on the advisability of abandoning the fiscal rules that limit the fiscal capacity of states in order to favor economic recovery once the health crisis has been overcome.