Reuters reports that ECB President Christine Lagarde said that the euro zone economy is at a turning point but its recovery must be firm and sustainable before the European Central Bank can debate clawing back emergency support.

"I am not suggesting that the pandemic emergency purchase programme (PEPP) is going to stop on 31 March," Lagarde said. "We have plenty of flexibility, but in terms of economic outlook we are heading in the right direction.

"It is far too early to debate these issues," she said about winding down the 1.85 trillion euro PEPP, which is scheduled to last at least until March 31 or until the crisis phase of the pandemic is over.

Economists expect the ECB to start discussing the end of PEPP at their September meeting.

"We are at a turning point where, bearing in mind alternative (virus) variants, we are on that recovery path, heading firmly towards a return to the pre-COVID-19 level," Lagarde added.