- IMF calls for EU fiscal capacity, rules to be linked to risk
Market news
IMF calls for EU fiscal capacity, rules to be linked to risk
The International Monetary Fund (IMF) said on Monday, the European Union (EU) should set up fiscal capacity and debt reduction pace to be linked to individual country risk, per Reuters.
Key quotes
“Independent national fiscal councils should play a bigger role.”
“EU needs fiscal capacity for climate change, energy, defense.”
"The speed and ambition of fiscal adjustments would be linked to the degree of fiscal risks.”
“The IMF proposal is timed to coincide with the start of discussions among EU finance ministers later this week.”
Market reaction
EUR/USD remains heavy selling pressure near two-decade lows of 0.9877 reached earlier in the Asian session. A 35% jump in the European gas prices amid news of Russia’s Gazprom halting gas deliveries to the old continent smashes the shared currency.
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