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ECB steps up support dramatically as Germany presses budget accelerator

David Chance


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The eurozone is a key part of Enterprise Ireland's strategy to grow Irish exports (stock photo)

The eurozone is a key part of Enterprise Ireland's strategy to grow Irish exports (stock photo)

The eurozone is a key part of Enterprise Ireland's strategy to grow Irish exports (stock photo)

European policymakers acted decisively on Thursday to boost the economy with a massive expansion and extension of the European Central Bank’s bond purchases and a huge fiscal boost from the Germany, the bloc’s largest economy.

Expectations had been high going into the ECB meeting and the central bank met them with room to spare.

“The ECB’s announcement today that it is expanding its Pandemic Emergency Purchase Programme (PEPP) from €750bn to €1.35bn, extending its duration until at least end-June 2021, and that it will reinvest maturing principal repayments until at least the end of 2022, more than matches the high expectations which policymakers had encouraged ahead of the meeting,” said Andrew Kenningham, Chief Europe Economist at Capital Economics.