October 7, 2016 / 1:17 PM / 10 months ago

Euro zone needs to share power to avoid secular stagnation - ECB's Praet

FRANKFURT, Oct 7 (Reuters) - Euro zone countries need to create a true fiscal and economic union if the bloc's economy is to avoid falling into a "secular stagnation", the European Central Bank's chief economist said on Friday.

"Going into this direction will require member states' willingness to make a leap forward in sharing sovereignty similar in scope to the one made when the Maastricht Treaty was signed," Peter Praet told an event in Washington.

"In this sense Member States collectively control the destiny of the euro area and through well-aligned policies can make sure that 'secular stagnation' will not take hold in the euro area." (Reporting By Francesco Canepa; Editing by Andrew Heavens)

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