In the Eurozone, there is a modest recovery and the ECB is ready for new measures to raise inflation. This was stated by the president of the central bank in Naples Mario Draghi at the end of the meeting that has left rates unchanged at 0.05%, which again calls on governments to accelerate labor reforms and liberalization. “We brought rates to zero time it is necessary for banks to transfer these conditions for households and businesses,” said Draghi stressed that the yardstick for assessing whether to launch new measures will be inflation expectations.
At the top moments in the course of tension between the police and the protesters of “Block ECB” protesting against the policies of the European Union. The climate became tense on arrival at the Royal Palace of Naples, when agents have captured a young man with a ladder had tried to scalarne the wall to hang a banner. The police also fired with a fire hydrant against protesters who responded by throwing objects.
“I understand the reasons for the protest” date “the weak state of the Italian economy,” but if you look at the past, “the fault of the crisis is not the ECB’s three years ago before the ECB’s financial system was collapsing, “then noted Draghi.
The recovery is still a mirage, therefore, for the Eurozone. The number one Eurotower reminded that you need to “closely monitor” the conditions under which it is expected that the recovery of the economy going forward, not hiding that the situation remains biased towards the downside of growth. Draghi stressed that the Council of the European Central Bank remains committed to the use unconventional instruments, if needed, but has once again placed emphasis on the fact that we need to focus on structural reforms, which should aim to boost the economy.
In the light of the clash on the penalty occurred between France and Brussels could not miss a hint of Draghi to countries that “have to continue to comply with the rules of the Stability Pact,” even if there are spaces within these “flexibility , “said Draghi.
As for inflation in the euro area, Draghi reiterated that this will remain low in the coming months and then begin to climb the slope gradually in 2015 and 2016 among the risk factors for further price reductions in consumption, Draghi has ensured that the Council will monitor the impact of weak growth, geopolitical developments and the effects of exchange rates of the euro.
As for purchases of covered bonds, Draghi has assured that they will start in mid-October, as well as the purchase of ABS. These measures “should encourage the resumption of lending to the economy,” said the prediente the ECB declaring that the “purchase program will last at least two years.”
European stock markets react badly to the instructions of the President of ECB. The Stoxx 600 index of area lost nearly a point and a half. The black is in Milan: the leading index FTSE Mib falls by 4%. Among the peripheral countries too bad that Madrid lost 1.84%, followed by Paris (-1.38%). As compared to the rest of the lists contain the pushups London (-0.62%) and Frankfurt (-0.85%). Bad especially energy and banking.
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