The charm of Naples, on the one hand, the Eurozone crisis on the other, of which the city of Naples is famous witness between high unemployment and protest movements that promise battle tomorrow. It’s the unusual frame of the board of the European Central Bank, in which President Mario Draghi will launch the plan for the purchase of securities “Abs” which, among the increasing pressure given by the European recovery slows, is increasingly seen as an advance to a more comprehensive package of interventions unprecedented.
“Tomorrow – Draghi explained yesterday addressing the governors and the Minister of Economy Pier Carlo Padoan at the dinner at the Royal Palace – will discuss how to continue to reconnect” inflation at 2%. The protests in Naples by radical movements reminiscent of the ECB as the crisis is “felt particularly acutely” in some areas of Europe. And if the ECB is ready to do their part, governments must also do their through reforms and ensuring fiscal sustainability, within a stability pact that already has flexibility.
In this regard, while Napoli meets the top of the ECB, the European Parliament, where he spoke Pierre Moscovic, comes to a screeching halt to the French project to exceed the 3% ceiling on the deficit / Pii: European Commissioner expressed by France less than a month ago and immediately accused of being the “Trojan horse” of the flexibility in the European Commission, it is very clear on the question raised by Hollande: ‘I’m here to ensure our function controllers the budget and if a country does not meet the requirements of the Treaty and is under procedure such as France, I will continue with the procedure. ” The flexibility adds Moscovici, “can not be interpreted as a change in the rules or in a creative way and disheveled” but reassures, “our system is not a smart drive, which evaluates very structural efforts.” To demonstrate this, the European Commissioner for Economic Affairs, recalls that “all referrals that France has requested and obtained from the EU Commission have always been approved by Brussels, in agreement with the Commission,” and thus the nation “has never violated the rules. ”
Meanwhile, Draghi, despite his projected into the political arena by an ECB made the crisis more than ever protagonist, invites the eurozone countries to see themselves as one big family. To welcome in Naples, along with the other members of the ECB Governing Council, there was Giorgio Napolitano at the residence of breathtaking Villa Rosebery, overlooking the Gulf of Naples, Vesuvius on one side, the other Capri. Meeting that a participant fails Italian describes as ‘very good’, denying that they were concerns.
But the economic figures lay bare an ‘emergency which again leaves the ECB in the role of the only European institution with the tools to cope with it, except to appeal for years to reforms by governments. The emergency is called small and medium enterprises, the main fabric of most of the European economy in crisis, particularly in Italy, by the recession and tight bank credit. This is the reason why Draghi today, after the meeting at which the rates will be left unchanged at 0.05%, having reached the minimum threshold, will reveal details of the plan “Abs”, indicating the types of securities that repackage loans to households and businesses that the ECB is preparing to buy, the time scale of the operation, maybe even the amount to which the ECB tip. Objective, remove the banks a significant part of their exposure, releasing new loans.
these measures will be enough to put the recovery in the eurozone on track? The International Monetary Fund warns of deflation, even the White House is exposed as rarely does, and calls for decisive action. The pressure on Draghi is outstanding, and since dinner last night, which saw ja next to the Bank of Italy governor Ignazio Visco and other members of the “governing council”, the talks will take place against the backdrop of the dilemma of “quantitative easing”: or not to follow the path of American Fed or the Bank of Japan, most of the ECB decided that for years buying hundreds of billions of government bonds in order to flood the economy with liquidity? Face of opposition from the German and the institutional context in which it operates, the ECB, not one but 18 governments to ensure individually sovereign bonds, so far, the ECB has taken time. Draghi had to concede the commitment that the ECB is ready for any measure unanimously, in its mandate. Napoli will be the place where the ECB will push them over? It seems unlikely that Jens Weidmann, the combative president of the Bundesbank main opponent of “quantitative easing” in the ECB council, will soften the sensuality ‘Neapolitan. The urgency of an economy that returns to worsen, however, could lead the Dragons to go further, defining more clearly how the ECB will move if they do not work measures deployed so far.
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