Stimulus will add to high debt levels but alternative is 'much worse,' ECB vice president says

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Stimulus will add to high debt levels but alternative is 'much worse,' ECB vice president says
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The vice president of the European Central Bank (ECB) has backed the unprecedented stimulus packages launched in the region, saying there were no alternatives for lawmakers.

Governments for euro area countries have passed major stimulus efforts in a bid to soften the impact of the coronavirus crisis and keep people in work.

However, Luis de Guindos, the vice president of the euro zone's central bank, said the issue of lofty debt levels needs to be put into perceptive. Germany and France — the two largest euro economies — have announced a ground-breaking proposal that could see the EU issuing large amounts of debt to mitigate the crisis. That plan would see the European Commission, the EU's executive arm, raise 500 billion euros in public markets.

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