European leaders are being urged to take action to boost the eurozone’s economy. The European Fiscal Board has called for countries to ‘use at least part of their available fiscal space in 2020…to increase spending on investment and enhance potential growth.’
Bank of France’s governor, Francois Villeroy, said that monetary policy can’t succeed alone, and politicians must act to reduce uncertainty. The Spanish Minister of the Economy also stated yesterday that, amid a favourable climate of low interest rates, countries should make investment to ensure a sustainable growth across the eurozone, with better-off countries helping those who have to continue reducing their debt-to-GDP ratio.
Meanwhile, Croatia has taken the next steps to joining the eurozone. It’s submitted its formal bid to join the European Exchange Rate Mechanism, in a move hailed by EU Economics Commissioner, Pierre Moscovici, as a ‘vote of confidence’ in the single currency. After two years in he ERM-2, if admitted, Croatia will be able to start making proper preparations to join. The final deadline is envisaged to be, at the earliest, 2022.
