“The euro is irrevocable”. Word of Mario Draghi. The president of the Ecb, responding to a question of mep Marco Zanni during the usual hearing before the commission on economic Affairs of the european Parliament. He explains that “the single market does not survive to the continuous assessments”. The intervention of the president of the Ecb is in a delicate moment. The netherlands, Luxembourg and Portugal, have launched the idea of a two-speed Europe, gathering the support of Germany (but on this Dragons does not comment). The candidate at the Elysee palace of the national Front, Marine Le Pen, has announced a program to expel France from the Eu and the euro. In Italy, the League and the M5s carry out a campaign launch some anti-european and against the single currency. The United States Donald Trump’s miss no opportunity to attack the euro. The scenario is in movement and the balance are extremely precarious. Dragons moves along a narrow path and in his speech he reiterated the line of the Ecb, explaining that the eurozone economy still needs the support of the Ecb, that there are still downside risks mainly due to global factors. The number one of the Eurotower has also noted that it is worrying the idea of returning to the pre-crisis situation in the theme of regulation: “it Is the last thing we need.” The Stock exchange reacted badly, Milan has closed, losing 2,21% (with the banking sector under a lot of pressure), Frankfurt 1.2%, Paris 0,98%. He limited the damage in London (down 0.22%). The spread of the Btp to 10 years on similar German title he closed with a 201 basis points.
The Qe and the “favors” to Italy
Draghi said that the european central Bank will continue with the program of Quantitative Easing “until the end of 2017 or beyond if necessary.” The risks for the euro zone remain to the downside and are mainly due to “global factors”. “If inflation expectations become less favorable,” or if financial conditions were to worsen, he added, the board of governors of the Ecb “is ready to increase,” the program of Qe “in terms of size or duration”. The benefits of our policy” accommodative monetary, he explained, “exceed clearly the potential for side effects,” and they “are better dealt with, if necessary, through other policies”. As to the alleged favourable treatment vis-à-vis of Italy raised a question, Draghi explained that the Ecb’s monetary policy “is not aimed at the spread, but the stability,” and “there is no inequality in the treatment of the various Countries of the euro area. In Quantitative easing, the Ecb “remains committed to emissions limits and market conditions.
The scenario
The undeniable resumption of inflation, observed to the Dragons, to be placed in relation to the effect of the one-time acceleration of the crude oil. For this reason, the central bank looks beyond the individual peaks in the trend of consumer prices if it were to judge of the nature of impromptu. “You still need the support of our monetary policy if we want the inflation to go to converge towards the desired target with sufficient credibility and in a sustainable manner,” he said. “For this reason — he added — we will continue to watch over changes in the rate harmonised if we will not have a lasting impact on the prospects of medium-term price stability”.
The charges of Trump
the president of The Ecb also responded to the accusations of the american government. “We are not manipulators of the currency,” said Draghi, citing a document from the u.s. Treasury last October in which, in addition to the choices of currency of the euro zone, one speaks of German politics. In that report, the president said the Ecb, one does not say that the european currency is manipulated “and the reason is that the criteria are met that indicate the existence of unfair practices”. With regard to the commercial power of germany, Germany has a large surplus in the external accounts, which reflects “the strength of the economy, its competitiveness”.
February 6, 2017 (the change the 6 February 2017 | 18:22)
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