EU Commission: EU governments should keep spending in 2021 to support economic recovery

Eurozone governments should keep spending in 2021 to support the economic recovery from the coronavirus pandemic, the European Commission noted in its formal recommendations that will be endorsed by finance ministers, per Reuters.

Additional takeaways

"Governments should make sure the extra stimulus is temporary and targeted."

"Some spending measures in draft budgets for 2021 of France, Italy, Lithuania and Slovakia are not temporary or matched by offsetting measures."

"Commission cautions Belgium, France, Greece, Italy, Portugal and Spain on medium-term fiscal sustainability."

Market reaction

The EUR/USD pair edged lower and was last seen trading at 1.1870, where it was still up 0.07% on a daily basis.