Fiscal expansion needed to sustain demand - ECB's Schnabel

Member of the European Central Bank's (ECB) Executive Board Isabel Schnabel stated on Tuesday that "significant uncertainty about future income prospects can be expected to prevail for some time" even though news about the effectiveness of coronavirus vaccines "provides light at the end of the tunnel."

This is why fiscal expansion is "indispensable in order to sustain demand and mitigate the long-term costs of the crisis," she explained.