Europe for another crisis by financial measures of Trump – The Colombian

The European Central Bank (ECB) rejected the accusations of the united States that the regional entity is carrying out currency manipulation. In addition, he warned that deregulating the financial industry, now a hotly debated issue in Washington, could sow the seeds of the next global financial crisis.

Arguing that lax regulation had been one of the main causes of the global financial crisis of a decade ago, the president of the ECB, Mario Draghi, said yesterday that the idea of relaxing the banking regulations was a concern.

he Added that it is potentially dangerous and puts at risk the relative stability that has supported the slow but steady recovery of the global economy and european.

The words of Draghi represent one of the stronger reactions of Europe to the moment from which the president of the united states, Donald Trump, he ordered a revision of the financial rules to the last Friday.

The implicit goal is to flexibilizarlas by the repeal of the financial reform passed in 2010 by his predecessor, Barack Obama, known as the Dodd-Frank Act.

With this it is sought to increase the regulation and supervision of the financial system to prevent the risk-taking that led to the acute crisis of 2008.

"There are a lot of people, friends of mine, who have a good business and can’t borrow money due to the rules and regulations of Dodd-Frank," criticized Trump before signing an executive order and waiting to follow his will in Congress, which is empowered by law to remove the Dodd-Frank act.

"The last thing we need at this time is a relaxation of the regulation," said Draghi at the Economic Affairs Committee of the European Parliament, in Brussels. "The idea of repeating the conditions that were in place before the crisis is something very worrying", he added.

Draghi also rejected allegations of a trade adviser to Trump about that Germany, the main economy of the euro zone, is using a currency widely devalued to take advantage of the united States.

the owner of The ECB argued, however, that the economic weakness is the main reason of the fragility of the euro.