FRANKFURT — The new president of the European Central Bank, Christine Lagarde, says better-targeted public spending would help support economic growth in the eurozone.
In her first official speech Friday, Lagarde indirectly chided countries like Germany that have kept a tight grip on their budgets while making clear that a spendthrift approach to public spending would be hazardous, too.
Lagarde said “there is today a cross-cutting case for investment in a common future that is more productive, more digital and certainly greener” and warned that public spending in the 19-country eurozone “remains some way below its pre-crisis level.”
She also said the ECB will begin a strategic review of its monetary policy “in the near future” but the bank would also “continuously monitor the side effects” of its current low-interest stance.
The Associated Press