Dragons: Shooting at risk for poor reforms and austerity – The Republic

Dragons: Shooting at risk for poor reforms and austerity – The Republic

MILAN – “The momentum of growth in the euro zone has weakened over the summer and recent estimates have been revised downwards. The recovery endangered by high unemployment, idle capacity and budgetary adjustments. ” So the president of the ECB, Mario Draghi, a hearing in the European Parliament points out that it is necessary to stress policy reform, without which the ECB can azionde little or nothing to the Eurozone economy back on track. On the other hand, an excess of austerity is also a risk for the recovery. “The risks of the economic outlook remains” then “down” due to “momentum weakened and geopolitical risks undermining confidence, and insufficient progress in structural reforms,” ​​said the governor.

In the policy, reminiscent of the Dragons ” urgent need for concrete commitments in the short-term structural reforms in Member States for the implementation of the Stability and Growth Pact, for an aggregate fiscal policy in the euro area, and a common strategy on investment. ” Draghi said that “countries that grow the most are those in which some structural reforms have already been implemented. The 2015 – he added – must be the year in which all governments and institutions of the euro area in the same way, should implement a common strategy consistent to restart our economy. “

The action Eurotower, which brought the cost of borrowing at a record low, has launched the liquidity auctions Tltro, initiated a plan ‘ purchase of ABS and covered bonds and said it was ready for new powerful tools, Draghi says he sees “the first signs that our package of measures is giving tangible effect” on the credit dynamics in the euro area. Progress that citizens still do not see in their pockets: “We are still in a situation where our accommodative monetary policy does not reach sufficiently” real economy, because “the credit market in some parts of the euro area is still unbalanced and showing tentative signs of recovery. “

In the future, as pointed out by analysts time, you can see more from the ECB: the measures” unconventional “in the study if inflation worsens still” could include the purchase of sovereign bonds, “specifies Dragons, reiterating that” the euro is irreversible “and that Frankfurt” will continue to do whatever it takes within its mandate. ” Words to which markets react with a marked improvement.

Arguments:

bce

austerity

penalty

growth

EU Parliament

Starring:

Mario Dragons