Saturday, January 24, 2015

Draghi: “We need a true economic union” – The Press

Draghi: "We need a true economic union" – The Press

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Draghi: “We need a true economic union”

Two days after the launch of quantitative easing the ECB governor appealed to Member reforms. He adds: “All suffering spectrum output from the euro”

The governments of the eurozone countries need to redouble their reform efforts to create a “genuine” economic union. These are the words the president of the ECB, Mario Draghi, in an article that will appear in the German periodical WirtschaftsWoche and which agencies anticipate some passages. “By asking the governments, in the context of an economic union, to adopt structural reforms, it gives credibility to their actual ability to reduce debt through growth,” writes Dragons to two days after the launch of the program of “quantitative easing”.

Each Member State, Draghi writes, must be “in a position to benefit” from the common market “to attract capital and create jobs. For this we need structural reforms that promote competitiveness, dismantle bureaucracy and increase the adjustment capacity of labor markets. ” “When the lack of reforms leads to lasting divergences within the monetary union – he adds – you get to the spectrum of the output of a country, and this eventually suffer all member countries.” Nevertheless, points out the number one Eurotower, an economic union is based on a common interest.

“That’s why there are important arguments in favor of the joint operation of sovereignty in this area, as part of a genuine economic union.” Tighter integration continues Draghi, will also allow better sharing of the risk in the private sector. ‘The sharing of risk, “warns the president of the ECB,” requires first of all a strengthening of the capital markets, particularly the equity markets; for this we have to move forward quickly with the union of the capital markets’

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