ECB Constancio: EU Budget Rules Need To Be Reinforced

BRUSSELS (MNI) – EU budget rules need to be reinforced with better
coordination and better monitoring, European Central Bank Governing
Council member and vice president-designate Vitor Constancio said on
Tuesday.

EU budget rules as set out in the Stability and Growth Pact
stipulate that governments should keep their annual budget deficits
below 3% of their GDP and the debt levels below 60% of GDP.

Constancio said he thought better coordination of Eurozone
governments is “absolutely necessary.”

“The mechanisms of the (EU budget rules in the) Stability and
Growth pact must be reinforced and some changes are necessary,” he said,
adding that “better monitoring” was also needed.

Countries with big imbalances should “do their duty” and correct
their imbalances, Constancio said. “In the end it is in their long term
interests.”

–Brussels: 0032 487 (0) 32 803 665, echarlton@marketnews.com

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