ECB’s Vasle urges fiscal policy action to boost economy

“LJUBLJANA (Reuters) – The current challenging global economic conditions demand broad macroeconomic policy actions in the euro zone and not just monetary policy actions, ECB Governing Council member Bostjan Vasle said on Sunday” writes Midwest Communications Inc for He said the IMF believed there were significant risks for a faster slowdown of global economic growth than expected so far.These include trade conflicts, uncertainties regarding Brexit and slower economic growth in China.He said present economic conditions indicate there will be a longer period of low interest rates, high liquidity and lax conditions of financing.Vasle said that the IMF was urging the euro zone countries with fiscal capacity to ease fiscal policy and stimulate economic growth with the help of public investments while countries with limited fiscal capacity should introduce gradual fiscal consolidation and reforms that would improve growth potential, including labor market reforms.

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