European finance ministers are calling for an aggregate fiscal response at the euro area level that fully respects the Stability Pact in order to cope with a prolonged period of sluggish growth.
The ‘Ecofin’ Council adopted the recommendation on the economic policy of the euro area on Tuesday, 18 February; in it, the ‘Ecofin’ Council emphasises that this fiscal response should be “differentiated” according to the specific situation in each euro area country and should avoid any...