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This article was published on February 1, 2016 at 17:46.
The last change is the February 1, 2016 at 18:43.
It should take care of the confidence of depositors. European Central Bank President Mario Draghi has launched today, the annual European Parliament debate on the budget of the monetary authority, a clear message about the problems of the banking sector: we must consistently apply the rules on the bail-in – those involving debentures and current accounts in excess of 100 thousand euro bank bailouts – and it must be ensured that “confidence in the safety of deposits is equally high in all the member countries of the euro by creating a European Scheme deposit guarantees. ”
The mention of Dragons – a clear response to the demands of the Bank of Italy to review the rules on bailouts to reduce the impact on the confidence of investors – is part of an analysis of the “political challenges” that Euroland faces. Among these, the turmoil in the financial sector which – according to Draghi – complete banking union: you must then “further work to harmonize our regulatory rules on supervision and to ensure consistent application” of the rules on bail in. We must also strengthen the credibility of the Single Resolution Fund for bank bailouts. To protect the stability of the banking sector, he has finally explained, required “measures to reduce risks and to share risks,” which are “two sides of the same coin.”
The ECB President also spoke on the issue of Brexit, the possible exit of Britain from the European Union that will be put to a referendum next year. It is one of the factors of political uncertainty that weigh on the Eurozone, negative for the economy: “A solution that anchor Britain firmly within the EU – said – and at the same time to allow the eurozone to integrate further increase confidence”. Other challenges, according to Draghi, concern the weak global growth, “low by historical standards”, with the consequent difficulties of developing countries, vulnerable to sudden financial outflows; and tax policies that, in compliance with the Stability Pact, must better support the recovery. “This could mean greater efficiency of the public sector services and a tax system that is more compatible with growth.”
The European Central Bank will continue in the meantime to play its part. Draghi noted recent new monetary policy measures, taken in December, and reaffirmed that the QE is working, but also repeated that in March the program of purchases of financial securities could be further strengthened to address the persistence of the current situation of low inflation. It should, he added, “careful analysis” of the channels through which the factors that keep inflation low may affect future prices and the level of wages, whose growth has been slower than expected.
Dragons finally stressed the need to return to action at European level. “We indubbiamento in a time when the cohesion of Europe is under examination. Many of the challenges we face are European or even global in nature, and these challenges require a stronger European response, “was the opening words of his speech. “Citizens and markets – was instead the conclusion – are too often insecure about our capacity to act together in a spirit of shared responsibility. We must show them that they are wrong. “
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