re-launches the Quantitative easing, which extends up to the end of 2017, even if it drops in April from 80 to 60 billion per month and to reassure the markets on the Italian political crisis after the victory of the No in the referendum on 4 December. The president of the Ecb Mario Draghi is not afraid of the press conference, the post-governing Council the Ecb to the questions about Italy, about the weakness of the banking system, on the possible effects of political instability and confirms: “I Am confident that the government knows what to do” and that the vulnerability of the banks “that there is from time to time, will be dealt with”.
Banks, you file the decree, omnibus for Mps and crisis institutions
the Dragons does not disappoint the expectations and uses all the weapons that he has available, monetary policy, and the words, to replicate on the fears of new fibrillations in the markets because of political uncertainty due to important elections next year in Germany, France and probably also in Italy, are again put at risk the performance of the euro. The number one of the Ecb rejects the sender, the accusation is, above all, matrix German, to encourage the Countries of southern Europe and, in particular, Italy. “No, no, of course not. We are not part,” he says, answering a question at a press conference. Then add that the markets have proven to be “stronger” than expected to the shock of these months. Direct reference to Brexit, the Us elections and the outcome of the referendum.
he acknowledged that “there is a large uncertainty, due in large part to political factors. Then, poses the question, “what can the Ecb?” and answers: “continue with determination” with the monetary policy that serves.
Banks and the Npl, the solution must be european
And points out: the Italian situation does not involve the risk of a potential contagion to the rest of Europe. “We don’t see risks for the euro Area” arising from the political uncertainty in some Countries, says Draghi, highlighting that the risks “remain content in the individual Countries”. But this does not mean that all, starting with Italy, are obliged to go ahead with the structural reforms.
Forward with the structural reforms
“The Countries need reforms should make them regardless of the uncertainty a general policy,” he says . And this because “it is the best way to restore growth and employment”. The two tracks on which will have to move to Europe to regain credibility and development, according to critics of a myopic approach, so far too attentive only to the rigour of the budget. Too much stability and little growth. “Each Country” – said Draghi – has vulnerability’, different, but both the macroeconomic environment compared to five years ago, when we had an outbreak, both financial markets and intermediaries are more resistant and strong. These problems, though important and that they must urgently find a solution, remain limited to individual Countries”, he concluded.
The “node bank” and the political agenda
the member countries of The euro point to convergence
“having Said this, he continued, the Dragons – trust is one of the premises because, our union makes progress towards a monetary union more perfect. There is also another condition that is particularly important and is the convergence. The member Countries need to focus on convergence, and to do so, they must implement the structural reforms necessary and that they would increase the convergence. Each Country has its own agenda about but the fact that you continue the structural reforms and efforts for convergence, it is important not to’ cause the other way there would be a risk for the Eurozone, but must be a goal in and of itself, because it strengthens our union.”
Dragons gives the charge to the Europe, Milan +1,64%, with the banks
More time to the Mps? Decides the Supervisory
the president of The Ecb does not go into the specific issues and you simply remember the rules. Responding to a question about Mps: “Ask for a response to the Supervisory Board” the replica on the request for an extension of time for the rescue of the bank of Rocca Salimbeni, by appealing to the separation between the Ecb and the banking Supervision. And does replying to people who ask of the hypothesis, circulated in the press in recent days, of a request for loan to the Esm from a part of Italy. “I know very little”, is limited to say the president of the Ecb, without renouncing to remind yourself of what it provides for the legislation. And that is that the loan can get “if there are no alternative solutions” and if “you fail to fill the needs’ of capital solutions in private”.
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