ECB'S De Cos calls for euro-wide fiscal mechanism instead of tapping Germany, Netherlands

MADRID (Reuters) - The euro zone must roll out a common fiscal stabilization mechanism to address a slowing economy in the bloc rather than asking Germany and the Netherlands for fiscal expansion, European Central Bank (ECB) policymaker Pablo Hernandez de Cos said on Tuesday.

“What we need is a fiscal stabilization capacity at the euro area level, let’s says in Brussels, that would be much easier, much better, and much more effective than trying to ask the Netherlands or Germany for more fiscal expansion,” De Cos said during a financial event in Madrid.

De Cos also urged politicians to advance toward a capital markets union by completing the banking union and agreeing on a common European Deposit Insurance Scheme (EDIS).

Reporting By Jesús Aguado; editing by Ashifa Kassam