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Euro-Area Fiscal Support Shows France, Spain Fall Short

Euro-Area Fiscal Support Shows France, Spain Fall Short

Euro-Area Fiscal Support Shows France, Spain Fall Short

(Bloomberg) -- At the aggregate level, euro-area fiscal support looks adequate to ensure that most households and businesses will start the third quarter in reasonable financial health, according to Bloomberg Economics. Worryingly, however, that picture is mixed across countries: Germany has done enough to support incomes even if the shock proves bigger than anticipated. France and Spain look to have done too little, though automatic stabilizers -- the cushion provided by falling tax revenue and social safety nets as the economy slows -- are stronger in these countries, and while Italy has done enough, that support may have come too late.

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