BRUSSELS - Euro zone finance ministers are set to agree this month a more growth-friendly fiscal policy, three EU officials said on Friday, a change from current targets that would pave the way for more spending in Germany amid fears of a downturn.
But now, amid fresh recession fears in Germany and concerns about the impact on the global economy of the coronavirus outbreak in China, euro zone countries have reached a preliminary agreement to increase spending in the event of a downturn. The text, agreed after lengthy negotiations, stresses that higher spending would need to be compliant with EU fiscal rules which mandate a deficit below 3% of gross domestic product, among other requirements.
It could also send a positive message to investors that the bloc is finally heeding calls from the European Central Bank to complement its loose monetary policy with a fiscal push that could make it more effective.
Where are they getting the money ? Byeeeeeee!
cut taxes, that will stimulate the economy. I've never seen countries with such high taxes as in the EU.