MADRID (Reuters) – Indebted euro zone countries must stick to budget rules and build up cash buffers to withstand future economic downturns, the European Central Bank’s vice-president Luis De Guindos said on Friday.
“The top priority in this area is for national policymakers to build up fiscal buffers to ensure policy space for future downturns,” he told an academic audience in Madrid.
“This is particularly important in countries where government debt is high and for which full adherence to the Stability and Growth Pact is critical for safeguarding sound fiscal positions.”
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