EU economy finance ministers asked Germany to increase public spending in order to support the ailing growth in the eurozone. Decision-makers and investors see a growing risk of recession looming on the horizon.
Draghi, Centeno, Le Maire and Dombrovskis urge Germany, Netherlands to invest against risk of recession. They all pointed to “countries with fiscal space” as those who should spend more to help revive growth.
Economic growth in the 19 countries sharing the euro halved to 0.2% in the second quarter compared with the first. The euro zone’s biggest economy, Germany, is on the brink of a recession, contracting 0.1% in that period.
We stand ready to act if risks materialise and things get worse
Draghi cut the deposit facility rate by 10 basis points to -0.50%. ECB will also restart on 1 November the asset-buying programme at a monthly pace of €20 billion, while Mario Draghi urges Germany, Netherlands to invest against risk of recession!
ECB president Mario Draghi decides substantial monetary stimulus to ensure eurozone financial conditions and support the euro area expansion.