European economies are experiencing a major shock with the spread of the COVID-19 pandemic, an unprecedented public health challenge. This shock destabilises growth prospects, disrupts production as well as the confidence of all actors, affecting overall supply, demand and investment. The anticipated risks relate to liquidity risk, an interruption or significant slowdown of the credit flow to the economy, and instability in the markets (already observed in stock prices, bond yields and the euro appreciation). These risks could all tighten and deteriorate financing conditions in the euro area and accentuate income and revenue shortfalls for households and firms.