Insight - US stimulus should be more boon than bane for struggling Europe

Risk to recovery: A pedestrian stands in front of a closed restaurant in Berlin. US overheating is a real risk, which could hurt Europe just as its recovery gathers pace. — Bloomberg

THE Biden administration’s US$1.9 trillion (RM7.83 trillion) pandemic recovery package should, on balance, prove a boon for Europe, far outweighing the short-term market turbulence that has already cornered the European Central Bank (ECB) into printing even more money.

The stimulus is forecast to accelerate growth in the world’s biggest economy to 6.5% this year and transatlantic trade means the eurozone should enjoy a windfall from it well into next year.