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“It is crucial to keep fiscal support measures targeted and limited in time; crucial to put public finances back on a solid footing after pandemic,”  Jens Weidmann, European Central Bank (ECB) Governing Council member and Bundesbank President, said on Thursday.

“It must be clear to everyone that we are not putting monetary policy at the service of fiscal policy,” Weidmann added. “The current high level of government intervention in the economy is justifiable in a crisis situation  but should not become the new normal.”

Market reaction

The EUR/USD pair showed no immediate reaction to these comments and was last seen posting small daily gains at 1.2195.