Brussels is aligned with Draghi and asks Germany to raise public spending

What should be the new plan of stimulus from Draghi?Goldman Sachs figure in 8.300 million to the "blow" to the big european banks if the ECB cuts rates on 30

Brussels is aligned with Draghi and asks Germany to raise public spending
What should be the new plan of stimulus from Draghi?Goldman Sachs figure in 8.300 million to the "blow" to the big european banks if the ECB cuts rates on 30 puntosLagarde believe that the monetary stimulus are "justified" in the long term

The European Commission has been aligned with the message launched by the president of the European Central Bank (ECB), Mario Draghi, after announcing this Thursday, more economic stimulus, and has demanded that those eurozone countries with fiscal space, such as Germany or the Netherlands, to raise public spending to boost the economic growth of the eurozone.

In a press conference in Helsinki (Finland) after the meeting of Finance ministers of the euro area (Eurogroup), the vice-president for the Euro and Social Dialogue, Valdis Dombrovskis, added that the rest of the members of the single currency, which do not have fiscal space should focus on improving their public finances and to adopt structural reforms.

"The main conclusion is that monetary policy cannot achieve this alone and invite those countries that have fiscal space to stimulate the economy. And we call on all countries to accelerate their efforts on structural reforms , " said Dombrovskis.

The Latvian has said these words a day after Mario Draghi announced a new package of measures by the ECB to stimulate the economy in full-downturn, and a downward revision of the precisions of GDP growth and inflation for the next two years.

The member of the Executive Board of the ECB, Benoït Coeuré, has explained that to take advantage of "all the benefits" of the monetary policy is "necessary", the contribution of other policies like fiscal. "Governments with fiscal space must act in a way that is efficient and on time," he assured, underpinning the message released a day earlier by the bank.

the president of The Eurogroup, Mário Centeno, explained that the debate between ministers on this issue has been quite "rich", although it has been joined to this petition in a personal capacity.

"My message is pretty clear. Countries with fiscal space should be used to combat the slowdown of the economy. Should be done not by solidarity, but in the first place, for his own interest", said the Portuguese, later to add that to this must be added "a good agreement" on the reform of the single currency.

The Eurogroup, however, remains divided on this issue. The French Bruno Le Maire, for example, has spoken to his arrival in favour of the European Commission and the ECB, and has urged countries with fiscal surplus to raise their investments.

however, the social democratic Swedish Magdalena Andersson, asked directly if Berlin should spend more, have answered that the capital they ask for it "should have spent more time in the last few years to pay off its public debt". "There is often a lot of pressure on Germany", has apostille.

The owner of German Finance, Martin Scholz, has preferred not to comment on the messages released yesterday by the ECB by appealing to the independence of the authority, presided over still by Mario Draghi.

Date Of Update: 14 September 2019, 22:00

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