MADRID (Reuters) - It is urgent to find a solution to the World Trade Organisation's current paralysis, as the organization has been a key multilateral institution in the arbitration of commercial disputes, ECB policymaker Pablo Hernandez de Cos said Tuesday.
"The WTO conflict-resolution system has been key to the proper functioning and predictability of the system, and therefore it is urgent to find a solution to the current paralysis of the Appellate Body appointments," De Cos said.
The World Trade Organisation effectively lost its ability to intervene in trade disputes last year after the United States paralyzed its Appellate Body by refusing to confirm new appointments after two of three members exited, leaving the trade arbiter unable to issue rulings.
In the context of a slowing European economy, the ECB policymaker said countries with higher fiscal room or capacity could contribute with more fiscal stimulus to support their economies.
De Cos also urged politicians to advance towards a capital markets union by completing the European banking union, agreeing on a common European Deposit Insurance Scheme (EDIS) as well as agreeing on a common fiscal stabilization mechanism.