ECB's Easing Package Is a Call for European Fiscal Reform

Abstract

Europe’s economic policy is currently being held hostage by incoherent decisions, which are not only crippling the euro area’s economy but also threatening global recovery. The ECB needs to admit that it cannot meet its mandate without fiscal support. In return, Germany needs to accept that true reform of Europe’s fiscal framework cannot take place without a real conversation about its debt brake policy, the schuldenbremse, and its balanced budget policy, the schwarze null.