Commission aims to reverse austerity by proposing fiscal stimulus for Eurozone
The European Commission yesterday (16 November) stepped up its efforts to leave austerity behind by advocating a modest expansionary fiscal policy for the Eurozone. This would entail a more conciliatory approach towards Member States who do not abide by the Stability and Growth Pact and a call for more public spending to spur growth in Europe.
In its communication, the European Commission urged Eurozone Member States to reach a fiscal stance of 0.5% of the region’s GDP for next year. Economic Affairs Commissioner Pierre Moscovici emphasised it is the first time that the Commission advocates for a fiscal stimulus and that this move represents a step forward for deepening the Eurozone.