Draghi: the fate of Athens is in the hands of his government. Aim … – Il Sole 24 Ore

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This article was published April 18, 2015 at 19:55.
The last change is the April 19, 2015 at 19:53.

WASHINGTON – “Betting against the euro has no senso.Volete do? Do it. ” The President of the European Central Bank appears very secure about the future of the common currency. Gone are the days of high spreads and even those of “whatever it takes”, when everything had to be done. Today the ECB was able to use many non-standard monetary policy instruments at its disposal, and aggressively. Beginning with the quantitative easing from 1.1 trillion. The Greek crisis is a problem then certainly not less, but definitely sustainable.

The fate of Athens is in the hands of his government
The contagion does not scare. Not too much, at least. Even in the case of an output – excluded – of Greece from the euro. To a question on a short-term risk, responded that “it is difficult to answer at this point.” He admitted, however, that “we would enter into uncharted waters if the crisis were to fall,” but – he added – “we are better equipped than in 2012 and 2010″. The idea of ​​Draghi seems in any case to avoid any chance by Athens: “We want all that Greece has happened,” he said. “It would be better to have a good health in Greece,” he repeated, but this does not mean that international institutions and the ECB itself can make concessions to the country: “The answer is in the hands of the greek government,” he concluded, adding that policies are needed that produce ‘growth, equity, fiscal sustainability and financial stability. ” “There is much work to do, it is now,” was his comment.

Financial stability deteriorated
In the deep recession, which is creating many problems in the country, and the difficult public debt sustainability, you are adding today a rapidly deteriorating stability financial. Draghi, as in recent days, said that there are no reasons to pause, stop, put a roof to grant emergency liquidity (Ela): Greek banks continue to be solvent and have adequate securities to be delivered as collateral. The Governor of the Central Bank of Lithuania Vitas Vasiliauskas, would however warned that the granting of emergency liquidity for Greece should cease in the summer.

Monetary policy is not all
Act, and soon, is not only the task of Greece. Draghi said that monetary policy can encourage the cyclical recovery, but not structural growth, which alone can ensure the reforms. Consistent with this warning, recalled that the risks to the economy have fallen, but remain to the downside, and that “no progress on fiscal sustainability and structural reforms risks could increase again.”

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