Draghi, the economy is stronger than before. A point of GDP in more with the Qe – The Republic

MILAN – The decline in long-term interest rates and the depreciation of the euro, a result of the ‘Quantitative easing, should push growth Italian by one percentage point by 2016. “Growth prospects are at the moment more favorable in recent years,” said the president of the ECB, Mario Draghi, in the hearing of the House, adding that there are signs that “the weak recovery purchases and uneven strength and stability. The main reasons are the positive effects of the collapse in the prices of energy products, the expansionary monetary policy and structural reforms undertaken in several countries in the beginning to make its effects felt. ” ECB President ribdisce that inflation will return “to values ​​close to 2%.”

The ECB can help you reconnect to the growth potential level, but this can be raised “only through structural reforms.” The operation of monetary policy is giving its effects. The ten-year BTP “exceeded 7% at the end of 2011. spread to 500 points base is exactly what for 15 years we Italians have paid before entering the euro.” Which means that four years ago, the markets were betting on the output of the country from the single currency. The figure “is a useful element – said Draghi – for those who want to make comparisons” on the usefulness of the single currency for our economy.

The monetary policy can not increase production potential because this depends on the structural reforms , in a monetary union need both, for this we need effective institutions in the two areas. “” To date, we expect to reach 60 billion euro for the month of March, although purchases are initiated only March 9. There are signs of a shortage of government bonds, this is not a realistic prospect ”. “We intend to continue with these purchases until the end of September 2016 or until inflation approaching permanently to our goals – added the president of the ECB – the measures taken so far have been successful.” Some critics, especially in Germany have claimed that the maxi-plan purchases of government bonds by the ECB, the quantitative easing would have discouraged the states to proceed with structural reforms. “We think exactly the opposite – has claimed Draghi – the ECB monetary policy creates better conditions for reforms, which are much more difficult to do during the phases of economic difficulty and recession.”

The President then focused on the problems between countries, touching also the ongoing clash between Germany and Greece . “The Union was not designed as a space where coexist
permanent creditors and debtors permanent”. “It is unthinkable that the differences between the economies of the eurozone are faced with permanent transfers” he added, stressing the need for a recovery “cyclical”, where in the act “is not structural.” “Growth is not an end in itself, its goal is to give opportunities to people. It is necessary that efficiency and equity are reconciled, that no one is left behind.” “The eurozone budget rules were broken repeatedly subjecting mutual trust in strong tension.”

“In many countries of the Eurozone growth potential has already damped before the introduction of the euro “, passing through Italy from 2.5% at the beginning of the 90s to 1.5% in 1999, and reducing time to almost zero according to the IMF. “Entrenchment again within national borders would not solve any of the problems that we face.” “In Italy there is a high concentration of micro-enterprises at below-average productivity, with a regulation that encourages you to stay small,” said Draghi noting how halve the civil proceedings would increase the size of between 8 and 12% . “The ECB looks forward to the efforts to reduce the burden of performing loans of banks because it frees up resources for the benefit of business.” “We need a healthy banking sector, loans must emerge rapidly deteriorated and need to be looking for solutions that do emerge the problem”.

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