Euro zone: If massive quantitative easing has led the public to understand that the ECB is subject to fiscal dominance (it is forced to keep governments solvent), then governments cannot refuse to spend more

It is likely that the public has understood that there is fiscal dominance in the euro zone: the ECB is forced to monetise public debt to keep governments solvent and stave off a public debt crisis. The public will then have also understood that under this arrangement, there is no limit to fiscal deficits. If this is the case, we would fail to see how euro-zone governments, at least those of “spendthrift” countries, could resist mounting calls for public spending increases : social welfare (universal income); pay for civil servants; spending on healthcare, education and the energy transition; paying for reshoring; support for struggling sectors; overindebted companies , etc.