Policymakers getting their act together

The latest high frequency data show that economic activity has picked up a bit in the past few weeks. Consumers have been returning to the shops and restaurants. But some sectors such as tourism and hospitality are yet to get back on their feet. And for every household which has accumulated savings and is keen to spend, there are others whose incomes and job security have been hit. Overall, we think there will have been only a partial recovery in activity in May. Against this backdrop, European policymakers are finally getting their act together. There has been significant progress towards agreeing a joint fiscal policy response through the EU budget and the ECB has stepped up its policy support by adding €600bn to its emergency asset purchase programme.