Mario Draghi has declared that if the euro zone’s fiscal policies became more expansionary, euro interest rates could rise faster: What are we to make of this statement?

The ECB clearly believes that it would be better to have a more expansionary fiscal policy and a less expansionary monetary policy in the euro zone. Indeed, the euro zone’s policy mix is unbalanced, with an ultra-expansionary monetary policy and a slightly restrictive fiscal policy. But is it that easy to switch to a more balanced policy mix? Among the large euro-zone countries, the only country that can increase its fiscal deficit without any difficulty is Germany, and it is well known that this will be met with much resistance ; For the other major euro-zone countries to be able to increase their fiscal deficit, interest rates must remain very low in these countries, which runs counter to the idea that a switch to a more expansionary fiscal policy would pave the way for a rise in interest rates.