EU eyes debt reduction paths for its Countries

The European Commission will present in the second half of October proposed changes to European Union fiscal rules that are likely to offer countries individual debt reduction paths, Commission vice-president Valdis Dombrovskis said on Saturday.

At a news conference after EU finance ministers held talks in Prague, Dombrovskis said the main goal of the rules, designed to safeguard the value of the euro, would remain making sure public debt was sustainable. "This will require fiscal adjustment, reforms as well as investments," Dombrovskis said, signalling government investment was likely get some more attention in the course of the reform.

Interest Rate


European Central Bank policymakers see a rising risk that they will have to raise their key interest rate to 2% or more to curb record-high inflation in the euro zone despite a likely recession, sources said. With inflation hitting 9.1% in August and seen above the ECB's 2% target for 2 years to come, the bank has been raising its rates at record speed.