“Can we stimulate growth only if the policies are mutually reinforcing – explained by Milan president of the European Central Bank -. This requires all parties, at both national and European , to play their role in line with their mandate defined in the Treaties of the EU “
The Governing Council of the ECB” stands ready to take further action, if necessary, in accordance with its mandate of maintaining price stability “, guarantees the president of the European Central Bank Mario Draghi, but – speaking at a gala dinner in Milan dell’Eurofi – warns: “No monetary or fiscal stimulus can succeed unless it is accompanied by the right structural policies” that “promote the growth potential and instill confidence.”
Draghi warned that “we are faced with a number of conditions, ie low growth and low inflation, high debt and high unemployment, which can only be addressed by concerted action on both sides of the supply and demand of ‘ economy. ” There will be no sustainable recovery in the absence of an increase in investment, therefore warns the head of the European Bank, reiterating the message launched in August at the meeting in Jackson Hole. “A sharp increase in investment – he said – is essential to bring inflation in greater proximity to desirable levels, to stimulate the economy and reduce unemployment. Only if structural policies, fiscal and monetary policy go hand in hand, the ‘euro area will assist the recovery of the investment. “
” What we need – highlights Dragons – is a consistent and credible Stability and Growth Pact in time and in all countries ” . As for governments, they must work to “a composition more conducive to the growth of fiscal policies, reducing the tax burden and the reduction of current expenditure unproductive.” “In parallel” private investment “may be useful to start a debate on the overall fiscal stance of the euro area, in order to increase public investment where there is fiscal space to do it.” “In this regard – said Draghi – can play a complementary role of the EU in supporting the recovery in private investment. Therefore welcome the package of € 300 billion announced by the incoming president of the Commission, Jean-Claude Junker, two months ago. “
Mario Draghi in Milan to take part in the work dell’Eurofi, usual meeting twice a year bringing together institutions, corporations and financial entities in Europe. Milanese is the central theme of the revival of growth within the EU and the development of rules. Draghi also be present in the work of the Eurogroup, which will always spaces of Fiera Milano City in Milan, which will precede the informal Ecofin meeting on Saturday.
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