‘ECB policies rely on reforms’

German deputy finance minister Steffen Kampeter urged countries such as France and Italy to live up to their policy commitments to boost the effectiveness of the European Central Bank’s monetary policy steps.

The ability of economies to absorb monetary stimulus and the benefits of economic-growth programmes rests upon fiscal stability, Mr Kampeter said in a speech in Dusseldorf.

That combination has yielded “moderate” improvements in countries that sought help from EU fiscal backstops at the height of the financial crisis, he said.