What happens if consumers are doing well and companies are doing badly?

We look at the situation of the euro zone. The COVID crisis has given rise to a significant asymmetry between consumers and companies: Consumers are generally doing well, thanks to public transfer payments and the forced savings built up during lockdown. Indeed, consumption has even picked up significantly ; Companies are struggling, due to the fall in earnings, the increase in debt and the costs related to the new health regulations. These problems are set to last despite the recovery in consumption. What effects might this asymmetry between consumption and the situation of companies have? If it persists, the supply of goods and services will be reduced while demand for goods and services will be strong, which is normally inflationary and will reduce the euro zone’s external surplus. This asymmetry also determines the expected shape of the recovery: first a rapid recovery in consumption, then slow growth due to companies’ problems; last, it determines economic policy recommendations: companies require support more than households .