Draghi: “Estimates Eurozone ever so positive for 7 years” – Il Sole 24 Ore

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This article was published May 22, 2015 at 10:51.
The last change is the 22 May 2015 at 11:20.

The European Central Bank President Mario Draghi reiterated his appeal to the governments of the euro because they realize, ‘as soon as possible, “the structural reforms that can boost the growth potential of the economies and must” come into the DNA of the eurozone. ” Not only that: an adequate level of flexibility of national economies in the euro area “should be part of our DNA common.”

The beginning of the recovery, which brought the euro zone “in the best economic conditions of the past seven years, “and the very accommodative monetary policy of the ECB itself are, according to Draghi, an important opportunity to make reforms, including labor markets and product, the reform of the tax and pensions. For the countries of the euro this could lead on average, over the next ten years, an improvement of 11% of income per capita, according to OECD studies cited by ECB President, who opened the annual forum organized by the bank in Sintra, attended by central bankers and economists from around the world. In countries that have made reforms of the labor market, such as Spain and Italy, inflation responds better to the conditions of the cycle, Draghi said.

Draghi repeated his request that the governance on structural reforms is transferred to the European level, but also pointed out for the first time that the reforms should be coordinated. “If all the realized at the same time – he said – everyone will benefit.”

“Monetary policy works its way into the economy. The growth is recovering and inflation expectations have risen from the lows – said the Italian central banker – This does not mean that our challenges are over. A cyclical recovery alone will not solve all the problems of Europe. It does not eliminate the existing debt that affects certain parts of the Union. Does not eliminate the high level of structural unemployment that afflicts too many countries. It does not eliminate the need to perfect the institutions of monetary union. But the cyclical recovery provides almost perfect conditions for governments to engage more systematically with structural reforms that are yet to return to growth, monetary policy can steer the economy towards its potential. Structural reforms can raise this potential. And the combination of these policies and demand can create stability and prosperity duevoli. “

The ECB president also warned, however, that the failure to implement structural reforms, or the decision to postpone, can trap the economies of the euro in a situation where the structural unemployment remains permanently above 10% and youth remains high with “scars” devastating.

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