Wednesday, September 24, 2014

Draghi: Eurozone danger is not deflation but the … – Il Sole 24 Ore

Draghi: Eurozone danger is not deflation but the … – Il Sole 24 Ore

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This article was published on 24 September 2014 at 11:53.
The last change is the September 24, 2014 at 12:01 am.

The eurozone is in recession and there is a risk of deflation. This ensures the ECB president, Mario Draghi, on French radio Europe 1 “Across the Eurozone do not see the risks of deflation but inflation very low for a long time,” said Draghi, reiterating that the entire euro area “is not in a recession, “but” the recovery is modest, weak and fragile. ” The President of the European Central Bank added that monetary policy will remain accommodative for a long time. “I can tell you that the Board of Governors of the ECB is unanimous commitment to using the tools at its disposal to bring inflation just below 2 percent.” “Interest rates – said the number one Eurotower – will remain low because they can not fall down more.” In any case, he reiterated, “monetary policy alone can not produce growth. We need more elements. “

The worst enemy for Europe, according to Draghi, is unemployment: the youth and in general, caused” by a broader feeling of lack of confidence in the future, “which must be fought primarily with investments, “private but also public.” This, however, must be done without violating the rules of the EU pact: “I have been violated in the past, and the result of this has not been exceptional. Many countries have come to the financial crisis is not prepared. ”

Draghi has finally added that guarantee credit to individuals is a necessary but not sufficient to restore growth, and to help young entrepreneurs needed structural reforms, less bureaucracy and taxes. “We can guarantee all the credit possible, but if in some countries for a young entrepreneur it takes months to get licenses and permits to open a new store,” then being “overburdened by taxation” at the end (this entrepreneur) “will not request credit. “



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