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in Front of the audience is not always well-disposed of the German parliamentary representatives, the president of the european central Bank, Mario Draghi has launched yesterday in a robust defence of the Ecb’s monetary policy, remembering that it brings benefits to Germany, And argued that the problems of the banks, which his German critics attribute it to the low interest rate policy of the institute to Frankfurt, have other causes, as deficiencies in the business model and risk management. No direct comment on the case, Deutsche Bank.
Exactly four years ago, Draghi was presented for the first time to the Bundestag in the most acute of the crisis in the euro area, shortly after his dichiarazuione that he would do “everything you need”, “whatever it takes” to save the euro. Since then, many things have changed, and the central banker, the Italian has claimed the role of the Ecb in mitigating the risk of a new "Great Depression". Our policies are working, he claimed, adding that will continue until the goal is reached, a position that didn’t please his questioners yesterday. The atmosphere of the meeting with the parliamentarians (yesterday it was members of the Commission of european affairs) was, however, not as tight in 2012, according to a participant at both meetings, even if the dissent of a part of the political establishment and the German financial remains deep.
Draghi has tended above all to demonstrate that Germany, which, according to his critics is a "victim" of the policy of the Ecb, has brought important benefits. “Through our efforts to bring back inflation to the 2% – said in his introductory speech – we have contributed to the higher growth and the creation of more jobs. In Germany, exports are benefiting from the recovery in the euro area, the unemployment is at the lowest level since the reunification, the wages have increased considerably and the venture capital is pouring on the Silicon Alley of Berlin”.
The argument most common in Germany against the Ecb is that the rates to zero to penalize the savers. Dragons, although they call themselves “sensitive” to the concerns of the investors, has argued that the real interest rates, i.e., net of inflation, have been negative in the past, as shows a study by the Bundesbank, and that the lowest interest spending of German households is higher than to the lower revenues in the period between 2008 and 2015. But the effect on the citizens extends to other areas: as taxpayers, for example, they benefit from the fact that the Government has saved money due to lower interest on the public debt of 28 billion euros only in 2015.
The deal will ascend when there will be economic recovery. “We need lower rates today to get them higher in the future,” he observed.
But the president of the Ecb, he also wanted to refute the accusations of the financial world, German that the low rates hurt banks, accusations which have made the echo yesterday a number of members. The banks, he said Dragons, if on the one hand, suffer a compression of the interest margin, the other, you have the advantage of lower collection costs, the increase in the volume of credit and lower the risk of the loan portfolio. Not are the rates low at the base of the problems of some banks, he explained, but their business model or risk management. Draghi has avoided mentioning Deutsche Bank, whose case has erupted again in recent days with the fall of the title in the Bag and the voices of public aid arrival, repeatedly denied, even yesterday, from the Government, explaining that it does not comment on individual institutions. “If a bank poses risks to the system of the euro area – he said – this is not dependent on low interest rates”.
the Dragons took advantage of the meeting with the parliamentary germans to reiterate the line that he has repeated incessantly over the last few months, and that is, that monetary policy needs to be accompanied by other measures to achieve sustainable growth: structural reforms (and in this he has found to agree yesterday, the German Finance minister, Wolfgang Schaeuble, often one of her harshest critics), and fiscal policy. And here the president of the Ecb wanted to mention that when he claimed, recently, that Germany has the space in the accounts for a fiscal stimulus, did not want to say that Berlin has to give the increase “irresponsible” of public expenditure, but to use this space in a way “carefully aimed”. A reminder of more nuanced in short, that came several times in recent times, including from the Fund.
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