Categories: Economy

Euro zone ministers back more spending ‘where possible’ to boost growth

Euro zone ministers back more spending ‘where possible’ to boost growth

Euro zone finance ministers have agreed to spend more “where possible” to counter the single currency area’s economic slowdown and rising downside risks to the economic outlook, their chairman Mario Centeno said on Thursday.


The vague declaration follows calls from the European Central Bank (ECB) last month for euro zone governments to use fiscal policy to boost growth since monetary policy alone will not suffice.


Centeno said the ministers agreed to closely co-ordinate policies in case downside risks to growth materialised.


Such risks include a no-deal Brexit, heightened trade tensions between the United States and China, potential tariffs on European cars exported to the U.S. as well as geopolitical tensions.


“We agreed that if there is a more marked downturn, we should not tighten our policies and make it worse. Where possible, our fiscal stance should be more accommodative,” he said.


The pressure to spend more is mainly on Germany and the Netherlands, because both have been running budget surpluses for years. Germany is in need of large investments but is also keen to reduce its debt that this year is to fall below 60 per cent of GDP.


German and Dutch finance ministers said on Wednesday their countries were already spending more. (Reuters/NAN)


AOM/MST


Edited by Abdullahi Mohammed/Muhammad Suleiman Tola

NNN

is a graduate and a professionally trained journalist, with experience in national news reporting/editing and verification at the News Agency of Nigeria. NNN is a media subscriber of the News Agency of Nigeria. NNN is a Nigerian online news portal that publishes breaking news in Nigeria, and across the world. Our journalists are honest, fair, accurate, thorough and courageous in gathering, reporting and interpreting news in the best interest of the public, because truth is the cornerstone of journalism and they strive diligently to ascertain the truth in every news report. Contact: editor[at]nnn.ng. Disclaimer.

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