Pandemic is boosting eurozone imbalances, ministers to mull way out

The Covid-19 pandemic is increasing economic imbalances in the eurozone, the European Commission will tell the bloc's finance ministers on Monday, but reforms and investments funded by European Union money should help address that.

Finance ministers from the 19 countries sharing the euro will hold monthly talks on Monday to discuss ways to counter the effects of the pandemic on the economy.

In a note seen by Reuters that is to form the basis of their discussions, the Commission said the impact of Covid-19 was especially visible in countries that were already vulnerable before the outbreak because of high debts.

"The Covid-19 shock appears to exacerbate existing imbalances within the euro area," the note said.

"Member states most impacted economically by the Covid-19 crisis, because of the gravity of the pandemic or their dependence on highly exposed...

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