>"How and where the EU's recovery fund is spent could have a big impact on Europe's recovery from the pandemic, according to economists at Morgan Stanley."

willing to put in these unconstrained, forward-looking sectors as opposed to playing defensive and supporting the existing sectors. Obviously, it’s a very difficult political decision,” he said.

European Union announced plans for a 750 billion euro pandemic recovery fund back in May as a way to overcome the economic damage wrought by the coronavirus.

The European Union announced plans for a 750 billion euro pandemic recovery fund back in May as a way to overcome the economic damage wrought by the coronavirus.

750 billion euro pandemic recovery fund back

Speaking to CNBC Monday, Nell said the key decision facing Europe right now was “how much you’re willing to put in these unconstrained, forward-looking sectors as opposed to playing defensive and supporting the existing sectors. Obviously, it’s a very difficult political decision,” he said.

The bank modeled three scenarios with varying proportions of support for what it sees as “constrained” and “unconstrained” sectors.

opposed to playing defensive and supporting the existing sectors.

which aren’t constrained sectors, then particularly in this situation where we’ve got a lot of spare capacity in the economy, you can have a very significant multiplier effect

"How and where the EU's recovery fund is spent could have a big impact on Europe's recovery from the pandemic, according to economists at Morgan Stanley."