ECB urges government to direct spending to investment and education

[FRANKFURT] Governments in the eurozone should redirect spending towards investment and education, a top European Central Bank policy setter said on Monday, arguing that the ECB could not foster growth on its own.

"The ECB cannot single-handedly create the conditions for a sustainable recovery in growth. This requires a concerted effort in terms of economic and fiscal policies," said Benoit Coeure, who sits in the ECB's executive board.

"All countries can make their tax structures more favourable to growth and redirect public spending towards investment, research and education," he said at a speech delivered in Paris.

REUTERS