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Report on Public Finances in EMU 2020

Report on Public Finances in EMU 2020

This annual report presents a review of key policy developments and analytical findings in the area of public finances. The COVID-19 pandemic has hit Europe hard. According to the Commission’s winter forecast discussed in Part I of this report, euro-area GDP is estimated to have contracted by almost 7% in 2020. It is forecast to rebound by about 4% in 2021 and by 4% in 2022. This implies that economic output in the euro area would only make it back to pre-pandemic levels in 2022. The depth of the recession in 2020 and the speed of the recovery are projected to vary widely across Member States. The projections are subject to significant uncertainty and elevated risks. […]