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Italian central bank governor slams Schaeuble global view

We will use all the tools we have: ECB's Visco

The rift on how the world should tackle slowing growth appears to be growing between Germany and a leading European Central Bank (ECB) policymaker.

Germany has come out against the world's major economies launching a coordinated fiscal stimulus package to tackle the growing signs of economic distress around the world.

The country's finance minister, Wolfgang Schaeuble, said at the meeting of G-20 finance ministers in Shanghai, China, Thursday that both fiscal and monetary policy had reached its limit and that the next stage must be reform.

Speaking to CNBC at the G-20 gathering, Ignazio Visco, the Bank of Italy governor and ECB council member said Schaeuble was wrong.

"I don't believe that. It is needed this response on the monetary side.

"There is no sign whatsoever for the time being that there are unintended consequences and that asset prices will increase dramatically" he said Thursday.

Visco said promoting stimulus remained an immediate priority.

"We are in state of downwards risk on the activity side," the ECB council member said.

The Bank of Italy governor agreed with Schaeuble's call for structural reforms but warned there could be no one-size-fits-all solution.

"Reforms are very important but you have to have specific structural reforms for each country or each area in the world," he said.