ECB says warns against 'profligate' fiscal policy |
|
|
|
Published
:
Thu, 19 Apr 2007 11:54
|
BUDAPEST (Thomson Financial) - European Central Bank rate setter Lorenzo Bini-Smaghi today stressed the importance of fiscal discipline, highlighting that runaway spending will undermine monetary policy.'Governments can undermine the independence of monetary policy by conducting an excessively profligate and hence unsustainable fiscal policy,' he said in a speech here.The Hungarian government expects its final 2006 budget deficit to be 9.2 pct of GDP, one of the highest in the EU and way above 3 pct limit advocated by the group.The government said recently that it expects this year's deficit to fall to 6.6 pct of GDP, due to austerity measure introduced last year.edward.krudy@thomson.comek1/ssCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
|
|
|
|
Print this Story
EU says Spain provides shining example on fiscal policies 