ECB's Coeure sees no need for more fiscal centralisation
FRANKFURT Dec 6 (Reuters) - There is no need for centralisation of fiscal policy in the euro zone beyond the planned banking union, European Central Bank Executive Board member Benoit Coeure said on Friday.
The euro zone is combining banking supervision under the roof of the ECB and also plans to find a common way to wind down non-viable banks in response to the crisis.
"Clearly, the euro area also needs solidarity mechanisms for extreme events that are out of reach of national policies - that is the role of the European Stability Mechanism," Coeure said in the text of a speech.
"But beyond that, I do not see a strong case today for further fiscal centralisation," Coeure said.
He also said that the ECB lowered its interest rates to a record low of 0.25 percent in November "with the sole purpose of ensuring medium-term price stability for the euro area".
"For any central bank, the strategy to ensure price stability needs to be symmetric. In other words, inflation should be neither too high nor too low," he said. (Reporting by Eva Taylor and Jonathan Gould)