International Monetary Fund (IMF) Chief Christine Lagarde crossed the wires in the last minutes, advising the European Commission to simplify the euro zone’s fiscal rules and anchoring them to debt.
Key quotes (via Reuters)
- Euro zone budget should include stabilisation function, convergence and competitiveness is not enough.
- Next EU Commission should come up with incentives for countries to pursue structural reforms.
- Euro zone growth has slowed, inflation is low, this requires policy coordination.
- Risks to euro zone include escalation of trade tensions.
- Risks to euro zone economy also includes no-deal Brexit, third risk is lack structural reforms in some countires.
- There is a risk euro zone can slip into prolonged period of low growth, low inflation.
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