The financial markets bet on a higher economic growth since the victory of Donald Trump in the U.s. elections, but the protectionism of the north american country and the political risks of other countries could harm Europe, said Monday that Vitor Constancio, vice-president of the European Central Bank.
The bags in the united States and Europe have advanced and bond prices have fallen because investors expect that the future management of Trump cut taxes and spend more, boosting growth and inflation.
But Constancio stressed that the intention of Trump to put “America first” could damage the exports of Europe and increase the “political risk”, in a likely reference to the increase of the support to the parties, eurosceptics and nationalists in the countries of the euro zone.
“we Should be cautious in drawing hasty positive conclusions of these events on the market because it does not necessarily indicate that the world economy will have an accelerated recovery with increased growth,” said the member of the ECB, at an event in Frankfurt.
“Until now, these events have pointed to an increase in economic growth in the united States, but in the context of a policy of ‘America first’”, he added.
Constancio reiterated its estimate that the economy of the euro area would continue to recover and boost inflation “well above the 1 percent,” the next spring, from the 0.5 per cent today.
But this projection is based on the assumption that not materialize, “the potential negative effects of the current global uncertainties,” he warned, urging economic policy “more expansionary” to support the growth. “In fact, a number of political risks could induce economic turbulence,” she said.
The constitutional referendum, Italian 4 December, at which prime minister Matteo Renzi has tied his political future, is considered a key indicator of the popular perception after the victory of Trump. A vote in favor of the “no” could lead to the populist Movement 5 Stars to be placed close to the Government.
No comments:
Post a Comment