The European Commission should focus on enforcing European Union budget rules rather than proposing fiscal stimulus, the chair of the Eurogroup of euro zone finance ministers said on Tuesday, in remarks that echo Germany’s position on tight spending.
With euroscepticism growing in Europe after years of slow growth and persistent unemployment, the commission – the executive arm of the EU – proposed earlier in November loosening budget policy for the 19-country euro zone. It suggested fiscal expansion of 0.5 percent of gross domestic product next year.
But Jeroen Dijsselbloem challenged those proposals at a hearing of the economic affairs committee of the European Parliament, reminding the Commission that its role is to monitor the application of fiscal rules in EU countries.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.