February 13, 2019 / 12:19 PM / 5 months ago

ECB would welcome euro zone budget: Draghi

FILE PHOTO: European Central Bank (ECB) President Mario Draghi delivers a speech during a ceremony to mark the 20th anniversary of the launch of the Euro, at the European Parliament in Strasbourg, France, January 15, 2019. REUTERS/Vincent Kessler/File Photo

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.

Reporting by Balazs Koranyi; Editing by Janet Lawrence

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