Evidently, for too long the eurozone’s banks have been a part of the problem, rather than a part of the solution /FT, 20 September 2019/. For sure, the ECB alone is not able to stimulate the economy. The QE programs helped to stabilize the eurozone’s financial systems but failed to accelerate economic growth. Instead, all the major players should join their forces to do it.
Fiscal policies should launch major overhauls of taxation by lowering all income taxes to enhance demand and raising some VAT-type taxes to stir up inflation, also to balance budgets.
At the same time, the ECB should reduce equity capital requirements on all loans granted to the SME sector, green financing and digital transformation.
Governor Matolcsy, MNB, the Central Bank of Hungary