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Loose monetary policy keeping interest spending low

There were no real surprises at this week’s ECB meeting, with policymakers doing little to push back against the increase in bond yields since March. But yields remain extremely low by historical standards and mean that despite the jump in public debt last year, government interest spending remained very low. Next week, data should confirm that the euro-zone economy contracted in Q1, while governments are set to publish their plans on how to use the money available through Next Generation EU.

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