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In a context of recovery marked by “a momentum lower than” expected, the european central Bank president Mario Draghi took the opportunity of a hearing before the european Parliament to highlight the urgent need to respond to the concerns of public opinion with a “european action”. The appeal is also linked to the fears caused by the choice of the british exit from the Union. From the outcome of the negotiations with London, warned Draghi, will depend on the future stability of the Union.
Quoting Carlo Azeglio Ciampi – “the euro is the greatest demonstration of the will the unity of the european people and a driving force of political integration” – the banker has identified three fields in which new efforts. In the first place, explained that the “new common european projects should focus on the immediate concerns of the public opinion”. All those challenges that go beyond national borders require “a european”, in particular: immigration, security and defence.
The economist has also stressed that greater european integration is impossible to achieve without building trust between the eu member states: “in order To strengthen this confidence said,” it is important that the rules decided upon are complied with”. President Draghi has underlined that “the framework of government in the economy (i.e. the Pact of Stability and Growth, ed) is essential to avoid imbalances that could ultimately destabilize the euro area”.
gaze runs to the reorganisation of the national accounts. The president of the Ecb has noted the “flexibility” of the budget rules. In this sense, he urged the countries that have little scope for manoeuvre – Italy – to look “at the composition of the balance sheet, not its size.” As to the request to the countries with margin of manoeuvre to spend more (Germany), Draghi noted that “this is not an obligation”, as opposed to budgetary consolidation, but it would still be preferable.
The exhortation to greater integration – with the completion of the banking union, the third chapter of his triptych – takes on new meaning in the light of Brexit. The dragons took advantage of his first audition after the referendum of June to explain that “the integrity of the single market must be preserved” in the negotiations that London will have with Brussels. The United Kingdom wants to continue to have access to the single market, but without respecting the four fundamental freedoms, among which is that of movement.
he Has warned the president of the Ecb, in defense of the respect for the four principles to which she must submit to those who want access to the single market: “it Is very difficult to imagine that an agreement is considered discriminatory against or in favour of others can be a source of stability for the future of our Union.” The central banker, thus, has hinted that concessions are too generous to the United Kingdom would create a precedent that other member countries might ask for, putting upside down the bases on which the Eu is based.
Referring to monetary policy, “very effective in its ability to be transmitted to the economy”, president Draghi offered no new signals on the future of interest rates. He admitted that the recovery continues, but “with a momentum lower than forecast in June”. He reiterated that the Ecb “is ready to act with all the means at its disposal”. In this context, however, has admitted that “very low interest rates for a long period of time are a risk to the stability financial”.
As to the “excess capacity” that characterizes the european banking system, the president of the monetary institute has explained that this is one of the “causes” of the low profitability of credit institutions in Europe and one of the aspects that “governments should keep an eye on. Should create conditions to facilitate consolidation” in the industry. Draghi has not wanted to comment on the state of health of Deutsche Bank, which worries financial analysts.
“The widespread feeling of insecurity, of economic insecurity, remains a major concern,” concluded the president of the monetary institute, speaking before the commission of the economic affairs of the european Parliament here in Brussels. “Can’t we just wait to come the best of times,” he added, the central banker -. We must renew our efforts to ensure that the economic and monetary union will offer security and prosperity. And the Ecb will play its part”.
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