Euro zone: Fiscal rules should change in their interpretation – Lagarde | Photo credits: IMF Staff Photograph/Stephen Jaffe/CC BY-NC-ND 2.0
PARIS, Jan 20 (Reuters) – The European fiscal rules set by the Stability and Growth Pact are not outdated but should evolve in their interpretation, said Thursday the President of the European Central Bank (ECB) Christine Lagarde.
“There are other levers on the methods of interpretation, the ‘guidelines’. It is on these elements that we will have to play to make something simpler, more effective”, she said on France Inter in response to a question on the rule fixing the public deficit at 3% of gross domestic product, suspended until 2023 due to the COVID-19 pandemic. (Written by Nicolas Delame and Jean-Stéphane Brosse)