Free Trial

MNI INTERVIEW: Little Appetite For Eurozone Fiscal Stimulus

By David Thomas
     BRUSSELS(MNI) - There is little appetite among eurozone governments for
greater fiscal stimulus despite mediocre growth data, European Fiscal Board
Chair Niels Thygesen told MNI.
     The overall fiscal policy stance of the euro bloc is currently neutral to
slightly stimulative by around 0.4% to 0.5% of GDP, and this remains
appropriate, Thygesen said in an interview.
     "The estimated expansionary stance of fiscal policies in 2020 seems a
broadly shared view (among forecasters and the European Commission). Combined
with a slight pick-up in an admittedly modest rate of overall expansion next
year, most governments to not see a general case for providing more of a demand
     The European Fiscal Board is an independent advisory body of the European
Commission, with a brief to evaluate and make recommendations on the European
Union's fiscal framework.
     While downside risks to eurozone growth in 2020 persist, Thygesen said that
until these actually crystallise governments will not adjust their current
fiscal plans.
     Thygesen noted, however, a growing focus on "the quality of public
     "Most governments now interpret (this) as assuring that growth-enhancing
expenditures and green investment should be given a higher priority."
--MNI London Bureau; +44 203 865 3829; email:
[TOPICS: M$E$$$,M$X$$$,MC$$$$,MT$$$$,MX$$$$,M$$EC$,MFX$$$,MGX$$$]

To read the full story



MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.