ECB Governing Council member Yannis Stournaras said there is strong case for incoming President Christine Lagarde to maintain policy stimulus. And, he added, “stimulus package last week was necessary because inflation remains very low. Benefits of taking action now exceed to a large extent the costs. There has been an insufficient contribution from fiscal policy.

Another Governing Council member Pablo Hernandez De Cos urged stronger progress towards fiscal union. He said in an event in Spain that “I strongly believe that a central fiscal capacity at euro area level could contribute … to macroeconomic stabilization.” Additionally, “monetary policy would not become overburdened, as it might be in the current economic juncture.”

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