The best time for European governments to launch reforms that help bring down unemployment is now insisted Saturday the president of the European Central Bank (ECB), Mario Draghi, adding that too many differences would endanger the monetary union .
“There will be a better time for reform is now,” said Draghi, during a forum for central bankers and monetary economists organized by the Frankfurt institution in Sintra, not far from Lisbon.
At the opening of this forum whose theme is “inflation and unemployment in Europe,” the ECB president had already considered on Friday that economic conditions were never so good in Europe since the beginning of the economic crisis calls seven years so that they are “almost perfect” to undertake structural resformas to allow the euro area to strengthen its growth prospects and better withstand new shocks in the future.
“In a monetary union, you You can not afford to have major structural differences and (further) increase, it tends to become explosive “and threatens the very existence of the union, also said Mario Draghi.
With interest rates near zero since months and a vast program of debt purchases launched in March, called “QE”, the ECB considers that it has already done much to improve the situation in the euro area and that in the future is up to governments to act, since the absence of it slows reforms to fulfill its mandate, it would in particular ensure price stability, with inflation around 2%.
Sitting by Stanley Fischer, vice president of the US Federal Reserve (Fed) Draghi stressed that “the structural component of weak growth is more important in Europe than in the US,” so there is a greater need for reforms.
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