FRANKFURT (Reuters) – The European Central Bank would welcome a common budget for 19 countries sharing the euro, especially if it provided macroeconomic stabilization functions, ECB President Mario Draghi said in a letter on Wednesday.
“A common budgetary instrument could, if appropriately designed, increase the economic resilience of the individual participating Member States and of the euro area as a whole,” Draghi wrote in response to a query from a member of the European Parliament.
“Rather than creating conflicts of interest between policy areas, in this type of situation a fiscal capacity of this nature could support the single monetary policy in stabilizing the economy and thus promote price stability,” Draghi said.
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