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The EU Fiscal, Economic and Monetary Policy Response to the COVID-19 Crisis

In this contribution, we assess the main measures, already taken or currently contemplated by the EU, in reaction to the COVID-19 crisis to mitigate its impact on Eurozone economies. The discussion begins with the recent monetary policy decisions taken by the ECB (1). The focus then shifts to the strategy deployed on the economic and fiscal side. We analyze (2) the coordination of national fiscal responses and their accommodation under the rules of the Stability and Growth Pact, (3) the role of the European Stability Mechanism, and (4) joint debt instruments.