Central Bank is ready to do its part to strengthen the application and help the recovery in ‘ Eurozone . But it can not be left alone and nation states, through structural reforms no longer be postponed, they must take the fight to the Unemployment . Because “no level of fiscal or monetary accommodation” may compensate. ECB President Mario Draghi , in the course of his speech at the forum of Jackson Hole , once again insists on the crisis of work in ‘ Eurozone and remember especially that for recovery – still “weak in uniform” – and reforms is necessary “to use the flexibility that already exists.” Then indicate the countries that, despite the crisis, they are able to start a path of positive reforms on the work front. A list in which l ‘ Italy does not appear.
Countries “virtuous” – Draghi gave the example of Germany explaining that “economies that have resisted the crisis better in terms of employment tend to be those with more flexibility in the labor market to adapt to economic conditions “just as the German” after the introduction of the reforms of the labor market. ” “Its relatively better results in terms of Employment – said – are also linked to the fact that German companies had access to tools to reduce the working hours of employees at a reasonable cost, as the reduction of overtime hours, greater flexibility of working at the firm level, and the widespread use of short-time working schemes. “
in Ireland and Spain , or within countries “who have undergone debt crisis sovereign in a stronger” it is possible “to see a different impact of institutions on the labor market ‘ occupation. ” Dublin and Madrid , he continued, “have both experienced a great loss of jobs in the construction industry after the shock of Lehman Brothers but fared very differently during the crisis of sovereign debt. ” “Unemployment in Ireland has stabilized and then declined, while in Spain is increased up to January 2013″ to begin to fall – he concluded – just after the launch of important reforms. ” No word on ‘ Italy , which is still waiting for his labor reform.
Speaking of’ inflation , Draghi reiterated that the Council Central Bank Governing “is also ready to use unconventional instruments.” Hypothesis already ventilated in recent days, when they were released data on GDP of Germany (down) and France (zero growth). The goal is to “preserve the firm anchoring of inflation expectations over the medium and long term,” which “showed a downward trend from 2.5% to about 0.4% of the summer 2012 at the latest.”
Financial Times: “Austerity, Draghi open to Matteo Renzi”
The ECB is approaching the position of Prime Minister Matteo Renzi with President Mario Draghi that softens tone on ‘ austerity , stating that countries should be encouraged to spend more in the context of existing European standards. An opening to the flexibility that will be “ welcome ” Rome and Paris . This was stated by the Financial Times , pointing out that the thrust of Renzi on budgetary rules was supported by French President Francois Hollande. “Although Draghi’s comments do not represent support for rampant spending to push the euro area economies – shows the Wall Street Journal – show a departure compared to years in which the ECB had highlighted the need to reduce the deficit and attract economic reforms even during periods of economic weakness. ”
Jobs, priorities – According to the Dragons’ two types of measures for the labor market are a priority “and relate to help workers quickly find new Opportunities and New Jobs so as to reduce the duration of unemployment and strengthen the skills of the workforce. And to reduce the high unemployment serves a mix of policies combining measures Monetary budget and Structural . “It would be helpful if the fiscal policy to play a bigger role next to monetary policy, and I think there is room for this, taking into account the specific conditions and legal constraints. These conditions include the level of expenditure of governments and Taxation that, in relation to GDP in the euro area, are already among the highest in the world. And we operate under certain rules of the budget – the Stability Pact and growth – which acts as an anchor for the confidence that it would be counterproductive and break. ” Draghi also emphasized the importance of cohesion of ‘ Eurozone , which in the long run “in each country depends on the achievement of a sustainable high level of Employment . And given the high costs of a possible threat to the cohesion of the union, all states should have interest to do it. ”
EU and fiscal policies – Draghi also raises the debate on fiscal policies of global ‘ euro area because, “unlike other major advanced economies, our fiscal policy is not based on a single budget voted by a single parliament, but on the aggregation of eighteen national budgets and the budget of ‘ Ue . Greater coordination between the different national tax positions should, in principle, possible to achieve a fiscal policy generally more conducive to growth for the euro area. ” In addition, “complementary action at the level of Ue would seem to be necessary to ensure an appropriate aggregate position and an extensive program of public investment – which is consistent with the proposals of the incoming President of the European Commission . “
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