This has been a critically important factor in alleviating the impact of the pandemic on the labour market and on banks’ lending. We judge that the economy still needs that support if the recovery is to continue and strengthen further. Ambitious fiscal measures by national governments were complemented by a € billion European safety net. And with the Next Generation EU fund, Europe took a decisive step forwards as the crisis evolved. For the first time, a common budgetary instrument at European level can be used to complement fiscal stabilisers at national level, even if it is currently only temporary. As a result, we now have an aggregate policy mix in which fiscal and monetary policy reinforce each other in supporting the recovery, and thus underpin medium-term price stability. The case for jointly shaping Europe’s future We must now carry this positive momentum forwards. It is time for Europe to move beyond the initial priority of containing the immediate impact of the crisis and shape a common vision for its future. The pandemic has the potential to accelerate trends that were already emerging before the crisis; trends that will lead to structural changes in the global economy. In a world where technological change and geopolitical tensions are transforming the geography of value chains, we should make full use of the size and diversity of the European economy. If we strengthen Economic and Monetary Union and deepen the Single Market, we do not only benefit all Europeans by improving the way we produce, distribute and consume.

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