Indebted euro zone countries must build up buffer: ECB's De Guindos

[October 05, 2018]  MADRID (Reuters) - Indebted euro zone countries must stick to budget rules and build up cash buffers to withstand future economic downturns, the European Central Bank's vice-president Luis De Guindos said on Friday.

Vice-President of the European Central Bank Luis de Guindos listens during the news conference following the meeting of the Governing Council of the European Central Bank in Riga, Latvia June 14, 2018. REUTERS/Ints Kalnins

"The top priority in this area is for national policymakers to build up fiscal buffers to ensure policy space for future downturns," he told an academic audience in Madrid.

"This is particularly important in countries where government debt is high and for which full adherence to the Stability and Growth Pact is critical for safeguarding sound fiscal positions."

(Reporting By Jesus Aguado; Writing by Francesco Canepa in Frankfurt; Editing by Hugh Lawson

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