EU’s recovery model will overtake the US – Money Times

EU's recovery model will overtake the US - Money Times
Do we want this short-term momentum or do we want to use the money to permanently improve the structure of the economy? (Picture: REUTERS / Yves Harman)

White Us Target a huge stimulus package after accelerating to recover the effects of the crisis CoronavirusLarger than Europe Advance through the slowest category.

President’s $ 1.9 trillion stimulus project Joe Biden, If the leaders Congress Approve the total amount, it will be Over triple spending According to UniCredit, employed by eurozone countries.

As a result, most economists expect Start The United States matches the size of the pre-pandemic in the 2021 development of the bloc about a year earlier.

J. P. Mourgan Chase estimates that the fiscal boost – the burden of eliminating fiscal stimulus and support measures to reduce discretionary government spending – will add 1.8% of US GDP this year. For the euro area, this factor should decrease by 0.1% from the economy.

The slowness of Europe is partly a result of its creation. The 27 sovereign governments of the European Union defined their fiscal policies and took responsibility last year to reach agreement on a 750 billion euro ($ 910 billion) Common Recovery Fund.

The proposal on how to spend the money is still being processed, and the money is unlikely to be distributed by the second half.

This careful consideration has its advantages. If successful, a UE will have a streamlined set of projects that increase productivity and growth potential in the coming years. If it goes wrong, however, the continent can be ruined for a long time.

“The question is what do we want to achieve,” said economist Carson Bruschi of ING Germany. “Do we want this short-term momentum or do we want to use the money to improve the structure of the economy? In Europe, we need the latter. “

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Sarah Gracie

About the author: Sarah Gracie

Sarahis a reporter covering Amazon. She previously covered tech and transportation, and she broke stories on Uber's finances, self-driving car program, and cultural crisis. Before that, she covered cybersecurity in finance. Sarah's work has appeared in The Wall Street Journal, Bloomberg, Politico, and the Houston Chronicle.

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