07 September 2016 at 12:02 GMT
While the European Central Bank has various options for extending its quantitative easing programme that isn't working, EU national governments hamstrung by the Maastrict criteria have few options for embarking on one (fiscal stimulus) that most agree is badly needed, says London-based Acheron Capital founder and chief executive Jean-Michel Paul in a column for Bloomberg Views. "As [ECB president] Mario Draghi and others have said on multiple occasions, the ECB cannot deliver on its own. It needs governments to use fiscal levers to help stimulate spending and growth," Paul says. What stops them is the Maastricht deficit and debt limits of 3% and 60% of GDP. "What is needed is a change that brings national accounting more in line with reality and the sound principles used in the private sector," Paul says, noting that infrastructure investment gets counted as an expense added to bloated budgets. "There can be little doubt that [the EU] could find a way if the will exists now," he says.
Read full article at Bloomberg