"Fiscal, prudential and monetary authorities have responded to the coronavirus pandemic by providing unprecedented support to the real economy. Importantly, the combination of policy actions has done more to limit the materialisation of risks to households and firms than each policy individually. Exploiting policy complementarities and ensuring the most effective combination of policies will, however, be equally important when authorities start to phase out the various relief measures. The differences in the enacted fiscal and labour market measures across the largest euro area economies, as well as their phase-out schedules, further complicate the challenge of obtaining the most effective policy combination."

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