Deutsche Bank CEO Christian Sewing has backed European Central Bank (ECB) President Christine Lagarde's call for fiscal stimulus from euro zone governments.
Euro zone governments, particularly those with budget surpluses, have long been under pressure to spend more and thus boost the 19-member region, with the central bank having eased monetary policy to the point of all-time low negative deposit rates.
Germany and the Netherlands are both deemed to have adequate fiscal space to boost spending, but are reluctant to increase their debt levels. In her maiden speech as head of the ECB on Friday, Lagarde proposed moving toward a "new European policy mix." "One key element here is euro area fiscal policy, which is not just about the aggregate stance of public spending, but also its composition," she said.
"Investment is a particularly important part of the response to today's challenges, because it is both today's demand and tomorrow's supply,"
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