the international monetary fund imf logo is seen outside the headquarters building in washington us september 4 2018 reutersyuri gripas brussels dec 6 reuters  euro zone governments should continue to spend to support the covid19 economic recovery though in an increasingly focused way and consolidate public finances only when it is firmly under way the international monetary fund said on monday in a regular report on the euro zone economy presented to the groups finance ministers the imf noted however that while consolidation itself could wait a credible way of how it would be done in the future should be announced already now policies should remain accommodative but become increasingly targeted with a focus on mitigating potential rises in inequality and poverty the imf said fiscal policy space should be rebuilt once the expansion is firmly underway but credible mediumterm consolidation plans should be announced now it said the fund also noted that the rise in inflation which hit a record high of 49 on a yearonyear basis in november was temporary and therefore not a big threat because it did not translate into a spike in wages called a secondround effect recent inflation readings have surprised on the upside but much of the increase still appears transitory with large secondround effects unlikely the report said adding that the european central banks monetary policy should therefore continue to be accommodative structural reforms and highimpact investment including in climatefriendly infrastructure and digitalization remain crucial to enhancing resilience and boosting potential growth the imf said