ECB President Mario Draghi delivered a speech titled “Risk-reducing and risk-sharing in our Monetary Union” at the European University Institute today.
He suggested that Eurozone needs a new, common “fiscal instrument” to ensure that member states wouldn’t be pulled apart during economic shocks. He said “we need an additional fiscal instrument to maintain convergence during large shocks, without having to over-burden monetary policy.” And, “its aim would be to provide an extra layer of stabilization, thereby reinforcing confidence in national policies.”
