Mon. Feb 17th, 2020

Calviño defends fiscal stimulus policy to face slowdown

The Spanish Minister of Economy in functions, Nadia Calviño, showed this Friday in favor of a policy of fiscal stimuli in the European Union (EU), so that countries with surpluses invest it to boost the economy and deal with the slowdown .

"There has been extensive talk about the need for monetary policy to be complemented by a decisive action of fiscal policy at European level and structural reform policies at national level," he said, after participating in a meeting of economic holders of the eurozone ( Eurogroup) held in Helsinki, which was followed by an informal meeting of Twenty-eight ministers.

Asked if the traditional division between northern countries such as Germany or Holland is maintained, reluctant to reverse the surplus, and southern countries, supporters of that measure, Calviño said the situation is changing.

"I think things have changed this week. In general, we all agree that it is necessary to have a more expansive fiscal policy at European level. Those countries that have more margin, because they have more capacity to act," he said.

He added that this week the German Minister of Finance, Olaf Scholz, "before his national Parliament has formally said that Germany will use its fiscal margin and will act at the time it sees it necessary, in response to a situation of need at European level or level national".

The president of the European Central Bank (ECB), Mario Draghi, yesterday called on some governments in the euro area to apply appropriate fiscal policies to stimulate the economy and raise interest rates.

This Friday in Helsinki, the president of the Eurogroup, Mário Centeno; the vice president of the European Commission for the Euro, Valdis Dombrovskis, or the ministers of France and Luxembourg supported the idea.

However, the Swedish Minister of Finance, Magdalena Andersson, expressed her opposition.

"Often, there is a lot of pressure on Germany, but perhaps the countries that put pressure on Germany should have spent more time in recent years in paying off their public debt," said the Nordic policy.

Calviño, on the other hand, acknowledged that during the Eurogroup there was a discussion about the general economic situation, in which it was found that the international environment is "very complicated, with strong commercial tensions that are being felt about international trade."

He also highlighted "important challenges for the autumn, in particular, the 'brexit' and, in short, an environment of economic cooling that is having an impact on the European economy, which continues to grow, but with more moderate rates."

According to Calviño, that situation explains that on Thursday the ECB approved a package of strong monetary stimuli to support the economy.

Questioned by the debate that the economic headlines will maintain tomorrow about European tax regulations, which among many other aspects require placing the public deficit below 3%, the acting Spanish minister assumed that, "over the past few years, they have been accumulating rules, which has done in the end that we have a very complex legal framework that may not be responding well to current realities. "

"We support the simplification and orientation of the rules towards variables that are easier to observe and control," he said, but asked not to generate "too many expectations" and insisted that tomorrow a first exchange of points will take place. of sight. "

. (tagsToTranslate) Calvin (t) defends (t) policy (t) stimuli (t) deceleration

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