EU Needs Fiscal Policy in Bid to Raise Inflation: Bruegel

European Union leaders need to bring taxes and public spending into the fight to speed up inflation in order to spur growth and fend off another round of crisis, according to the Bruegel research organization.

For the euro area and the rest of the EU, inflation needs to move toward the European Central Bank’s target of just below 2 percent, Bruegel Director Guntram Wolff and senior fellow Zsolt Darvas wrote in recommendations to the EU’s incoming leadership. The European Commission and the European Council can’t count on the ECB to do all the work to restore price levels, they wrote.