ECB's Lagarde: Fiscal Sustainability Is Key to Economic Stability

ECB President Christine Lagarde stressed the importance of sound public finances to fiscal budget chiefs around the world in Thailand. Lagarde said fiscal sustainability remains a "key pillar" of overall economic stability, and governments should ensure that fiscal measures in response to energy shocks are temporary, targeted and tailored. She reiterated the ECB's latest analysis: downside risks to the economic outlook exist, inflation risks are tilted to the upside, and moderate policy measures should be taken to curb inflation. Lagarde also mentioned that more than 30 central banks have expressed interest in the Eurosystem's upgraded repo tool, which is designed to ensure the smooth transmission of monetary policy and strengthen the international role of the euro.