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In a speech on Wednesday, Christine Lagarde, President of the European Central Bank (ECB), said Europe's economy still needs support in the form of monetary and fiscal stimulus. And the regulator has no plans to remove these aid tools until full recovery is achieved. Also, the head of the European Central Bank shared her vision of the impact of US policy on the EU economy. Lagarde noted that the US fiscal response will increase growth in Europe by 0.3% in the medium term, and the US impact on inflation in Europe will be 0.15%. The head of the regulator also said she was amazed at how corporate and households adapted to the crisis. However, countries with a larger tourism sector are likely to take longer to recover. In addition, Lagarde stressed that the banking sector in the eurozone is «quite strong», however, one should still expect further bankruptcy of some institutions.
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