European Central Bank President Mario Draghi supported calls for a common eurozone budget, urging governments to increase spending to strengthen the single currency bloc amid slowing global growth, the Financial Times reported.
Draghi said that as certain member countries' economies are inherently weak, the eurozone could benefit by further integration and a commitment to fiscal union, the FT reported.
French President Emmanuel Macron has advocated for fiscal transfers between eurozone countries and a common budget for the eurozone, though Germany is concerned about higher spending amid recession risks at home.
In June, the European Union's finance ministers failed to agree on how to fund the eurozone budget.
Meanwhile, Draghi reportedly defended the central bank's recent decision to roll out stimulus, saying its benefits outweigh any negative consequences such as increased pressure on savers. He sought support from fiscal policies to help reduce pressure on the central bank, saying it may have to keep the stimulus package in place for a long time in the absence of any fiscal support.
