EU signals end to austerity, calls for more spending; finds Ireland 'broadly compliant'

The EU has called for an end to austerity and is now recommending an increase in government spending across Europe.

EU signals end to austerity, calls for more spending; finds Ireland 'broadly compliant'

The EU has called for an end to austerity and is now recommending an increase in government spending across Europe.

The European Commission is recommending a so-called "fiscal expansion", which is the opposite of austerity, with money being returned to the economy.

It said: "At this point in time, the commission considers that there is a case for a significantly more positive fiscal stance for the euro area."

The Commission, in sanctioning an average 0.5% fiscal expansion across the EU, said it was important for all eurozone countries to do so, as each member will otherwise act as a drag on the others.

The call came as Brussels cast its verdict on the budgets of Eurozone members, with Ireland's 2017 budget found to be "broadly compliant" with rules.

"The Irish economy continues to perform well and short-term prospects, while subject to considerable uncertainty, remain reasonably good," the commission said.

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