Draghi: recovery strengthens. On the end-year inflation – AGI – Agenzia Journalistic Italy

20:25 March 23, 2015

(AGI) – Rome, March 23 – The European economy will grow ‘more’ expectations and the prices will rise again at the end of the year. ECB President Mario Draghi at the European Parliament delivered a reassuring message, defends the monetary policy decisions of the Eurotower and returns to ask governments to continue on the path of reform. Inflation in the Eurozone will remain ” very low or negative in the coming months “, but will begin ‘to rise gradually towards the end of the year, begins Draghi, that for 2015 the average price will be’ 0%, but will rise ‘to 1.5% in 2016 and 1.8% in 2017.
And if the specter of deflation can’ be removed, continuing the number one institute in Frankfurt, also the progress of ‘economy as a whole may be better than expected: European growth is “gaining momentum” and “the basis for economic recovery in the eurozone and is’ clearly strengthened”, says the number one Eurotower.
L ‘institute had to revise upwards its forecasts for 2015 and 2016 than earlier projections of December, respectively 0.5% and 0.4%, adds: “This is’ particularly due to the drop in oil prices, the gradual consolidation of external demand, improved financing conditions thanks to our accommodative monetary policy and the euro deprezzamenteo “.
Draghi defends Quantitative easing launched from Frankfurt and confirms that the pace of purchases of government securities by ECB, started on March 9, will settle ‘on the 60 billion already’ by the end of this first month. Overall, purchases will amount to 60 billion a month “at least until the end of September 2016,” but in any case “until we see a sustained adjustment of inflation, consistent with our goal of achieving a rate of inflation below, but close to, 2% over the medium term. ” The same ECB announced today that the March 20, 2015, bought 26.3 million euro (28.7 billion dollars) in government bonds, under the plan of Quantitative easing. As for Greece, Draghi reiterated that the ongoing talks between Greece and institutions aim to “create the conditions for the renewal of the financial assistance program” and said he was “confident” that this result will be ‘reached. “Greece – said – must undertake to meet its debt obligations with the policies of the future, for the review of the program.” As explained during his hearing at the European Parliament, the ECB ‘and’ ready to reintroduce the derogation “for Greek bonds, which can not be used as” collateral “as it does not meet the required criteria, once it is arrived to the review of the aid program. The exposure of the ECB against Greece and ‘€ 104 billion, or more than double compared to last December when he was 50 billion, remembers Draghi. It is, he said, 60% of the GDP greek. And the goodness ‘of the program of Quantitative easing and’ intervened again today also the governor of the Bank of Italy, Ignazio Visco, that “the program to purchase government bonds improves the macroeconomic environment, reduces uncertainty, says trust “. However, he added the number one of Via Nazionale, ‘and’ a program designed by nature to fade when it will have ‘achieved the goal of ensuring the stability’ of prices, so ‘as defined in the mandate of the ECB. And’ this is the time to intervene structurally growth potential of the economy – he concluded – with tools leading to increase productivity at a time ‘and employment, creating new revenue and new demand. ” (AGI).