Economy Minister during the press conference / ATLAS
A Spain likes Draghi plan . Economy Minister Luis de Guindos believes it is imperative to follow the outline set by the President of the European Central Bank (ECB) -reforms, but also monetary and fiscal stimuli to the risk of a third recession with serious side effects Spanish economy. In a rare show of sincerity in these times, today the Union Guindos called an exercise in “self-criticism” on economic policy strategy followed in recent years. Only Draghi has done something similar, with the recognition that Europe needs urgently demand policies (stimuli), and not just on sale (reforms and cuts) if you want to avoid the curves: a scenario of low growth and low inflation for a continent alarming empachado public and especially private debt
Guindos joined that wake with a clear statement of intent: “Not all European strategy was wrong,. in the previous stage of the crisis were the main risk fiscal and competitiveness imbalances and reforms that were missing and fiscal consolidation. But now is the time to be self-critical and to lay the foundations for a new approach with the aim to grow and create jobs. ” That speech is shared by the vast majority of ministers, and even the Commission. At least in theory. The reality is different: that rhetoric is, for now, little more than an empty shell
The meeting of holders of Economy and Finance of the Eurozone-the Friday-and EU-today closed. with a first victory Draghi, the points. His analysis is catching and managers eurozone discuss how to activate measures claimed. But the atmosphere of those two meetings in Milan infer that the ECB should not expect too much help. The Eurobanco will from this week’s top monetary stimulus, with a new open bar liquidity is supplemented by purchases of private assets as of October. For the plan to work, according to Draghi, it requires further reforms in Paris and Rome, fiscal flexibility and investment plan. And that will only come if llega- dropper: reforms will not be easy for France and Italy and North suspicious when smoothing the fiscal targets. And as for the investments promised by the new Commission President, Jean-Claude Juncker pack-a 300,000 million euros, today it became clear that new money will just mean any trust to the European Investment Bank (EIB), through leverage of funds, a kind of financial version of the multiplication of the loaves and fishes.
The euro ended the second quarter with growth at 0% and inflation and slash also 0%: with all the symptoms of a Japanese disease. But to those numbers, the sense of urgency is only seen in the above boring central bankers. The ECB Vice-President Vitor Constancio Portuguese reiterated to the press concern for environment “zero growth and very low inflation, a problem with the high private and public debt.” No growth is harder to pay debts; without inflation, the bill is even heavier debt to the debtor. But this diagnosis is not even entirely shared by the mandarins of the euro: Germany and its satellites-the creditors’ countries are comfortable despite the warning signs that give price indices with increases of less than 1% from a year ago. At the Ecofin meeting, the Vice President of the Commission, the Finn conservative Jyrki Katainen- even asserts that such a low inflation “also has beneficial effects in certain circumstances,” according to sources, which resulted in a scuffle with the Italian Social . Roberto Gualtieri, president of the Economic Affairs Committee of Parliament
In the midst of a debt crisis, creditors are those who have the upper hand; why Germany leads the EU hardly rivals since the outbreak of the crisis. The echoes Draghi’s speech are barely audible to Berlin. The German minister Wolfgang Schäuble takes days warning that we must not soften the fiscal rules. Continuous rejects calls for Germany to undertake a public investment plan. If anyone expected a change of tone in Milan, which made Schäuble was otherwise rather, stressed the need to adopt reforms-a remote control message to Paris and Rome and said that Europe is sitting on a mountain of cash; only allow reforms to boost competitiveness and reappear again trust investment, according to the amendment to the entire Draghi plan .
But the investment, in short, does not reappear . It has fallen about 15% from pre-crisis levels. The Italian Minister Pier Carlo Padoan said the Ecofin has urged Brussels and the EIB to step up preparations stimulus package to revive the chapter, essential to return something to recovery. “It will not be just words,” he promised. But that is precisely what appears at this time
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The Spanish Government will accelerate the reforms, the minister
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