Europe currently has the world’s largest tax burden, which means a competitive disadvantage, said the president of ECB Mario Draghi.
( EFE ) .- President European Central Bank ( ECB ), Mario Draghi, considers that the low interest rates that currently exist in Europe will remain at that level for a long time.
“For a long time interest rates are very low and probably it will remain so for a long time,” Draghi said in an interview published today by the German business newspaper “Handelsblatt”.
It also urged European governments to advance structural reforms.
“The triad of lack of reforms, bureaucracy and high taxation slowing recovery in Europe,” said the president of ECB .
Europe said, currently has the world’s largest tax burden, which means a competitive disadvantage.
Specifically, the president of ECB called for increased investment in research, science, education and digital technology and, in parallel, reducing all other costs and tax burden.
Draghi sees the danger that the eurozone is in a spiral of falling prices that hinders the reduction of debt, compared to investment companies and readiness to consumer spending.
“The possibility that not comply with the goal of maintaining the Price stability is now greater than six months ago, “he said.
Therefore, hinted that the ECB could start soon to implement the program purchase of sovereign debt.
Draghi said that they are already advancing the technical preparations for “change the speed, scope and composition of our measures in early 2015 if it becomes necessary to face a long period of low inflation. “
On the other hand, denied leave the ECB to the policy, for example, become successor Italian President Giorgio Napolitano.
“I do not want to be a politician. My mandate in ECB was governed until 2019, “said
From this year. The ECB only take decisions on interest rates every six weeks and not once a month as he had done before.
Draghi explained this change of pace as a reaction to exaggerated expectations of the markets, if not met, tends to generate turbulence for which there is no objective economic justification.
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