ECB's Coeure:
- Global economy is overshadowed by renewed uncertainty and broader geopolitical risks
- Move towards a fiscal capacity could take the form of a gradual and conditional process
- Public finances in many eurozone countries still in fragile condition
- Only a few countries have fiscal space available
- Fiscal situation casts doubt on Eurozone's ability to face future economic shocks
With yields at 1.57% in Spain and 0.2% in Germany, virtually everyone has fiscal space for stimulus. The key is spending it on things that will enhance productivity.
