Eurozone fiscal stance appropriate, reform needed: ECB's Coeure
[BRUSSELS] The eurozone's fiscal stance is appropriate, but governments need to coordinate structural reforms to ensure the eurozone economy does not become stuck in low growth and low inflation, European Central Bank Executive Board member Benoit Coeure said.
Mr Coeure said that the ECB had to prove convincingly that it would bring inflation back towards its target of below, but close to 2 per cent over the medium term, but it could only do so if other institutions and governments played their part.
"I see the risk that the eurozone economy would stabilise on a path with low growth and low inflation," Mr Coeure told an economic conference on Wednesday, calling it "one per cent economics" where both growth and inflation stay around that level.
"My belief is that it is not sustainable," he said.
He said that while EU institutions and governments were independent, they were also interdependent on each others'actions and that fiscal, monetary and structural policies were all part of the mix.
REUTERS
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
International
Vietnam National Assembly head resigns amid graft purge
China central bank flags bond investment risks to some financial institutions: sources
Xi tells Blinken US, China should be 'partners, not rivals'
Indonesia’s push for regional economic integration to continue under Prabowo: Vivian Balakrishnan
Outgoing Singapore, Indonesia leaders to hold their final retreat in Bogor on Apr 29
Beijing city to subsidise domestic AI chips, targets self-reliance by 2027