Trial now

Needle Still Points South


Yields Bounce as Equities Make New Monthly Highs


Heading North


Bull Rally Accelerates


Economists Survey Raises 2021 CPI Forecast To 4.9%

Sign up now for free access to this content.

Please enter your details below and select your areas of interest.

Europe's Stability and Growth Pact should be reformed to give it more built-in room for countercyclical fiscal policy, the head of the Dutch central bank said in a speech Friday, with the European Commission set to relaunch its review of the bloc's fiscal rules after Germany's general election on September 26.

"A more countercyclical fiscal framework should therefore have robust and credible rules that ensure national governments keep their debt levels in check," Klaas Knot said. "Not only should member states build up buffers in good times. They should also increase potential economic growth that ultimately bolsters debt repayment capacity. So, as we allow for more fiscal flexibility, limiting the level of debt will have to play a bigger role as an anchor for fiscal prudence.