ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Railways
  • World
    • Economy
    • Politics
    • Markets
  • Survey
  • videos
  • photos
  • ZNAA'22
  • Trending News
    • Viral News
    • Travel
    • People
    • Entertainment
    • Sports
  • More ...
    • VIDEOS
    • PHOTOS
BREAKING NEWS
  • Whopping 1 lakh jobs on the cards in aviation and aeronautical manufacturing sector by 2024, says Minister
  • Money Guru: 10 funds for financial independence, this 15th August - details
  • India's forex reserves jump 60x since 1990s, surge 335 times since Independence | Check this data
  • India@100: Anil Singhvi predicts Nifty will reach 1,75,000 in next 25 years - Here's why
Read in App
Business News » World News

Euro zone inaction leaves ECB to step into the breach again

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App

As the euro zone`s downturn drags on, the lack of coordinated response from the bloc`s governments appears to be leaving an uneasy European Central Bank with little choice but to step into the breach again.

As growth has slowed in recent months, the ECB has had to put off plans to return to more normal monetary policy and had to rethink the potential dangers of keeping rates negative for longer than planned.

But with interest rates already at record lows, OECD chief economist Laurence Boone said that euro zone countries should not be looking to the ECB again to revive their economies.

"If downside risks materialise further, governments must act and coordinate fiscal policies, and they must do structural reforms," Boone told a conference at the Bank of France on Thursday.

Germany, France and Italy, the euro zone`s three biggest economies, are easing fiscal policy this year, which Barclays said should provide some support to growth.

While Germany is focused on social payments and some investment, Italy aims to roll out a universal income scheme and France is easing the tax burden by more than 10 billion euros ($11.2 billion).

Together, their fiscal easing should add 0.2 percentage points to euro zone growth, bringing it to around 1.2 percent this year, Barclays said in a research note this week

But euro zone countries` budget stimulus is being done largely independently of each other, especially on public investment, which economists say would have the biggest effect.

"Greater public investment across the euro area is needed but is unlikely to materialise, even if economic activity weakens much further," Barclays concluded in a note this week.GROWTH SHOCKS

IMF chief economist Gita Gopinath warned on Friday that euro zone financial markets would be unable to absorb a future shock in the absence of a more unified banking sector and capital markets.

"In the next crisis, a lot of these issues are going to crop up. Why? Because it continues to be the case that there are fragmented markets," Gopinath said at the conference.

Her boss, IMF chief Christine Lagarde, said the solution would be to agree a shared bank deposit guarantee scheme. But northern countries remain suspicious that the long-proposed plan could leave them on the hook for repayments of deposits in southern countries burdened by bad bank loans.

In the absence of better levers to bolster the euro zone economy, the focus falls on the ECB, which is also contending with inflation slipping away from its 2-percent target despite its already record low interest rates.

Although economists polled by Reuters estimate that data due on Monday will show euro zone inflation remained steady at 1.5 percent in March, weak data from France and Germany increase the chances of a softer reading.

In other data next week, the first Friday of the month will bring all-important payroll data in the United States, with economists on average forecasting the creation of 170,000 jobs after a paltry 20,000 the previous month.

Along with retail sales and ISM business surveys, the data should paint a clearer picture of whether the United States is at risk of joining the euro zone in a more marked slowdown.

($1 = 0.8911 euros)

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Economy
Updated: Fri, Mar 29, 2019
11:15 pm
Reuters
RELATED NEWS
Asian shares slip ahead of crucial US inflation data Asian shares slip ahead of crucial US inflation data
Profit of public sector banks rises 9% to Rs 15,306 crore in April-June Profit of public sector banks rises 9% to Rs 15,306 crore in April-June
India's forex reserves jump 60x since 1990s, surge 335 times since Independence | Check this data  India's forex reserves jump 60x since 1990s, surge 335 times since Independence | Check this data
Economic downturn impact? SoftBank posts massive $23.4 billion loss, 2nd straight quarter in red Economic downturn impact? SoftBank posts massive $23.4 billion loss, 2nd straight quarter in red
UP $1 trillion economy :  Yogi Adityanath government signs MoU with Deloitte India to achieve target UP $1 trillion economy : Yogi Adityanath government signs MoU with Deloitte India to achieve target

LATEST NEWS

International travellers ALERT! Airlines asked to share passengers' information flying abroad - Check latest rule

WhatsApp: Soon! You can hide your number from specific groups - Check details

Shrikant Tyagi Noida News Update Today: ARRESTED! Here is latest on the Grand Omaxe woman abuse, assault matter

Nitish Kumar snaps ties with BJP again, resigns as Chief Minister of Bihar

Integra Essentia acquires substantial interest in Bareilly Rice Processing Facility

Debt-ridden Future Lifestyle Fashions plans to sell assets, awaits lenders' nod

ICAI CA Foundation Result June 2022: Check date, time and direct link to download CA result

2022 Hyundai Tucson India launch today: When and where to watch live event

Join Indian Army: Agniveer admit card, hall ticket for jobs recruitment exam released; Direct download link

Shifting gears! Majority of EV owners say charging is no hassle, finds survey

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
© 2022. India Dot Com Private Limited. All Rights Reserved.
LIVE TV