The euro area’s stimulus is less stingy than in past crises

THOSE STRUGGLING to break bad habits should take inspiration from the euro zone. During the global financial and sovereign-debt crises it did too little to shore up growth; at times monetary and fiscal policy were tightened precisely when they should have been loosened. By contrast, its response to the covid-19 pandemic has been less flat-footed. Consider the events of the first three weeks of June alone. Germany’s government, usually tight-fisted, announced a stimulus package of at least €130bn ($146bn). The European Central Bank (ECB) said it would buy another €600bn in bonds. And as The Economist went to press, national leaders were due to discuss setting up an EU-wide “recovery fund” of €750bn, an idea first floated in April.