European Union's 2016 fiscal stance likely to be modestly expansionary

European Union Commission anticipated that Euro area's aggregate fiscal stance should be broadly neutral in next year. The commission considers this as appropriate.

The Euro area's fiscal stance might turn modestly accommodative in  2016, allowing for the additional spending on the refugee flows and terrorism. This will be the first since 2010, when the fiscal adjustment started.

"More easing may come, notably if Germany decides to spend some of its projected significant general government surplus (1.0% of GDP in 2015)", says Barclays in a research note.