Lagarde: It is not decided to end debt purchases in March 2022

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Lagarde: It is not decided to end debt purchases in March 2022

Frankfurt (Germany), Jun 14 (EFE) .- The president of the European Central Bank (ECB), Christine Lagarde, has said that ending emergency debt purchases due to the covid pandemic is not something that has already been decided by March 2022, but will depend on the economic situation.

In an interview with Politico, published this Monday, Lagarde predicted that “in terms of the gross domestic product (GDP) of the euro area we will probably return to the level before the COVID-19 pandemic, which we had in December 2019 , if the Delta variant doesn’t spoil our plans, in the first quarter of 2022. “

“This is a quarter earlier than we had anticipated in our projections in March,” added the ECB president.

“We must lead the economy through the pandemic to a recovery phase, which has started now. We need to anchor the recovery. We always talk about anchoring inflation and we are not unaware of it, but the recovery must be firm, solid and sustainable.” , according to Lagarde.

In this sense, Lagarde continued with a metaphor: “You do not remove a patient’s crutches unless and until the muscles have begun to rebuild sufficiently so that the patient can walk on his own legs.”

“Based on our latest projections, we see that the euro area economy will return to its pre-covid-19 level during the first quarter of 2022. That said, I am not suggesting that the pandemic emergency debt purchase program is going to conclude March 31 “, 2022, Lagarde said.

The President of the ECB stressed that they have a lot of flexibility, although in terms of economic outlook they are going in the right direction.

The Governing Council is going to buy emergency debt for a total value of 1.85 trillion euros at least until the end of March 2022 and, in any case, until it considers that the crisis phase of the coronavirus is over, he said. the ECB in a statement after the meeting last week.

Lagarde considered that it is too early to discuss whether these debt purchases should conclude in March 2022, although the projections and the design of the bond purchase program seem to lead in the right direction.

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