ECB’s Holzmann Says Fiscal Policy Is Doing More Than Necessary

Politicians in the euro area are threatening to undermine the European Central Bank’s fight against record inflation by spending too much money to combat the cost-of-living crisis, Governing Council member Robert Holzmann said.

“Fiscal policy is forced to intervene due to the social upheavals caused by inflation,” the Austrian central bank governor told journalists in Vienna on Friday. “The problem that we have in Europe in general and in Austria specifically is that the data is not there to act in a very targeted way. Therefore, more money has to be spent than is necessary.”