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This article was published April 19, 2015 at 08:11.
WASHINGTON
The eurozone has all the tools to tackle the contagion from the Greek crisis and is much better equipped than in previous years, but if the crisis were to fall, “we would be in uncharted waters,” even if it is “premature speculation.” The euro is irreversible. In any case, the fate of Athens is in the hands of his Government. The President of the European Central Bank, Mario Draghi, said yesterday at the conclusion of the work of the IMF, where the case Greece has dominated the discussion outside of official meetings, with a dense web of consultations, of not wanting to “even take into consideration “the hypothesis output of Athens from the euro and reiterated the position expressed since 2012 that the euro is irreversible. “Do not bet against the euro, it makes no sense to take short positions,” said Draghi. The Italian central banker cited explicitly as a defense from infection two instruments, which were created for other purposes, the UNWTO (the purchase of securities of countries in crisis launched in 2012 and never used) and the Quantitative easing (Qe) the purchase of public debt started last month.
These days in Washington, argued Draghi, have served to create a method of dialogue with the Greek authorities, but “much more work is required and it is urgent.” The creditors of Greece seem willing to meet in Athens. “All we want Greece to succeed, but the answer is in the hands of the Greek authorities,” he said. The same position, even if expressed in tones more abrupt, the German finance minister, Wolfgang Schaeuble, “Athens tell us what he wants.” International institutions have not yet had the government answers that were waiting on a coherent and detailed that, according to Draghi, must have four objectives: growth, equity, fiscal sustainability and financial stability. The banker seemed to make an opening to requests for Athens to be able to concentrate on a limited number of reforms to be given priority, instead of proposing a plan broad spectrum. “Few proposals are better than many,” said Draghi. The Director of the IMF, Christine Lagarde, has argued that we should not only speed, but also deepen the reform plan.
Meanwhile, the ECB continues to allow the provision of liquidity to Greek banks, through the door Emergency Ela, by the Greek Central Bank, “as long as banks are solvent and have sufficient collateral.” Draghi denied that this liquidity will go to fund the government (which would be prohibited by the prohibition of monetary financing), as the roof to the purchase of government securities short by banks has already been reached, 3.5 billion the euro and therefore are not possible additional purchases. The issue of the rollover of short-term securities is still subject to a legal analysis by the ECB and will soon be examined by the council, has revealed Dragons.
The Minister of Finance greek, Yanis Varoufakis, has ostentatious optimism and said that “it seems to me that patience towards us is over.” Varoufakis also said that a solution must be “within the European family,” in response to the voices of the German press that Russia is preparing to bring forward some payments to Athens for the transit of gas. Furthermore refuted rumors from Moscow.
The Greek crisis also worries countries that do not belong to monetary union, a sentiment expressed here in Washington from both the US Treasury Secretary, Jack Lew, both from British Chancellor, George Osborne.
Draghi repeated his analysis eurozone economy presented this week at the ECB press conference disturbed by the irruption of an activist who has jumped on the table of the president. “This was a press conference uneventful,” joked yesterday the banker at the end of the meeting with the journalists. The economy is recovering, said Draghi, emphasizing two aspects of new and positive: both the actual indicators both surveys point to an improvement, and growth is driven by consumption. After starting the Qe and its effects already visible especially in the financial markets, the ECB expects that the effects are transmitted to the real economy and in part this is already happening. The president of the Frankfurt has since agreed with the IMF on the need to clean up banks’ balance sheets from impaired loans.
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