Thursday, September 11, 2014

Draghi, “without investment no sustainable recovery” – AGI – Agenzia Journalistic Italy

Draghi, "without investment no sustainable recovery" – AGI – Agenzia Journalistic Italy

Dragons without investment no sustainable recovery September 11, 2014 22:07

(AGI) – Milan, September 11 – There will be ‘sustainable recovery in the absence of an increase in investment. This was stated by the president of the ECB, Mario Draghi, today at the Forum Eurofi Milan, reiterating the message launched in August at the meeting in Jackson Hole.

“A sharp increase in investment – he said – and ‘essential to bring inflation in greater proximity’ desirable levels, to stimulate the economy and reduce unemployment. Only if the structural policies, policies fiscal and monetary go hand in hand, the euro area will assist ‘to recover the investment. ” In the euro area “can ‘be useful to open the debate on the overall orientation of fiscal policies, in view of increasing public investment where there is fiscal space.”

According to Draghi, who expressed “appreciation” for the package of 300 billion euro, which was announced two months ago by the President of the European Commission, “there ‘a complementary role to play in supporting the recovery of investments private. ” Dragons and ‘believes that “we need a coherent and credible stability pact’ and growth over time and in all countries. Context in existing governments can find the space to support productive investment and achieve a political settlement of budget more ‘pro-growth, reducing the tax burden and current spending unproductive. “

In addition, to encourage a resumption of investment’ and ‘now indispensable swift and effective implementation of the necessary reforms” structural. The ECB expresses “full support” to the intention of the President of the European Commission to create a Union of the capital markets. This step, he added Draghi, “would represent a natural evolution of the single market, to the benefit of all Member States of the EU”. According to the president of the ECB, “we need to develop alternative sources of funding reliable compared to bank credit, such as stock and bond markets, securitization, the activities ‘loan insurance companies and asset managers. E’ of fundamental importance for the investments need to diversify the sources of funding and to overcome fragmentation in the financial sector. “

In order to stimulate the recovery and employment, the EU countries should remove barriers to entrepreneurship and young, innovative companies. “It is expected that Spain registers a strong recovery in investment over the next two years – he said – for the pro-business reforms and the reduction of taxes on income of individuals and society. ‘” Serve then remove the barriers to entry in the markets for goods and services, making it more ‘easy to start and run businesses: “In many cases these barriers deprive lymph entrepreneurship, especially among the young, innovative companies that create most of the jobs and are very sensitive to changes in terms of opportunity ‘investment. “

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