The Governing Council of the European Central Bank (ECB) already ruled out a rapid recovery of the European economy at the end of April, according to meeting minutes published on Thursday.
A so-called “V-shaped” rebound, which would quickly follow the downturn caused by the new coronavirus (Covid-19) pandemic, “can certainly already be ruled out,” the minutes say. Such a rebound would mean there was limited economic damage.
“If consumers do not regain confidence soon after the end of containment, there is a risk that demand will remain subdued,” the central bankers noted.
The crisis’ effects on employment will depress demand, with the risk of a prolonged recession. The ECB has said it is ready to further strengthen its tools for fighting the crisis.