Latest News

Euro zone to coordinate fiscal, monetary policy to fight inflation

0

France, Germany pledge unity to support economy against inflation By Reuters

Breaking News

‘;

Economy 1 minute ago (Sep 09, 2022 09:36)

© Reuters. FILE PHOTO: German Finance Minister Christian Lindner and French Finance Minister Bruno Le Maire attend a news conference, after Le Maire was awarded the Grand Cross of the Order of Merit of the Federal Republic of Germany, at the Ministry of Finance in B

By Jan Strupczewski and Jason Hovet

PRAGUE (Reuters) – France and Germany pledged on Friday to act together to protect households and companies from soaring energy prices, while also using fiscal policy to fight record high inflation.

French Finance Minister Bruno Le Maire and his German counterpart Christian Lindner made a show of unity at the start of talks for euro zone finance ministers in Prague, telling reporters they would cooperate on policies.

“It is a signal that France and Germany start this meeting together. It is a signal that we are standing shoulder to shoulder, not only here, but policy-wise as well,” Lindner said.

The pledge comes a day after the European Central Bank (ECB) raised its key interest rates by an unprecedented 75 basis points and promised further hikes, prioritising the fight against inflation even as the bloc is likely heading towards a winter recession and gas rationing.

“As finance ministers we have to meet our responsibilities as well,” Lindner said. “There has been a strong signal from the ECB to fight inflation. And so this is our duty as well – to fight inflation by means of fiscal policy,” he said.

“We will protect our households against the consequences of high prices. We have to do the same for private companies, hit by the high gas and electricity prices,” Le Maire said.

France, Germany and other countries have announced multibillion-euro packages to help business and consumers cope with soaring inflation. The Bruegel think-tank estimates EU government support has already reached 282 billion euros ($285 billion), with more on the way.

But the support itself can fuel inflation, creating a vicious circle. Euro zone finance ministers will discuss how to coordinate policies to prevent this.

“Those are difficult discussions, but I am sure we will find a common solution we need,” Estonian Finance Minister Keit Pentus-Rosimannus said.

In Brussels, EU energy ministers are also meeting on Friday to discuss a long list of proposals from the European Commission to tackle the region’s energy crisis, including a price cap on Russian gas, a windfall levy on non-gas power plants, a bloc-wide cut in electricity demand, and emergency credit lines for power firms facing soaring collateral requirements.

($1 = 0.9904 euros)

France, Germany pledge unity to support economy against inflation

Euro leaps parity on ECB, world stocks hit one-week highBy Reuters – Sep 09, 2022

By Carolyn Cohn and Stella Qiu LONDON/SYDNEY (Reuters) – The euro rose back above parity to a two-week high against the dollar on Friday following a large rate hike and hawkish…

Banks lift European shares higher, miners rise on soaring metal pricesBy Reuters – Sep 09, 2022

By Shreyashi Sanyal (Reuters) -European shares rose on Friday, with banks extending gains a day after the European Central Bank reinforced its fight against inflation with an…

EU ministers meet over ‘energy war’ as power bills surgeBy Reuters – Sep 09, 2022

By Kate Abnett BRUSSELS (Reuters) -European Union energy ministers met on Friday to seek agreement on ways to shield citizens from sky-high energy prices and prevent power…

Our Apps



Terms And Conditions
Privacy Policy
Risk Warning

© 2007-2022 Fusion Media Limited. All Rights Reserved.

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

Dollar Decline Accelerates, Swiss Franc Strong

Previous article

Lloyd’s of London building to close for Queen’s funeral

Next article

You may also like

Comments

Leave a reply

Your email address will not be published.

More in Latest News