Draghi goes from Merkel, the first meeting after Qe. “Eurozone does not … – Affaritaliani.it

Before visiting the Merkel , the first meeting since the purchase program bond quantitative easing , so much disputed in Germany by economists and the President of the Bundesbank , Jens Weidmann, ECB President Mario Draghi more to bet on the recovery of the continent. The economic situation in the euro area is “steadily recovering,” said Dragon and “we can be optimistic about the prospects,” he added. But he warned: “We must continue to push on reforms, we can not rest on our laurels.”

Then a phrase that seems to be a response to criticism of the Bundesbank : “A monetary policy ultra -espansiva not a disincentive for eurozone countries to pursue reforms. ” “In contrast, monetary policy creates an incentive to make them and the recent recovery gives us a window of opportunity, with the conditions to push forward the reforms to make the euro area less brittle and more resilient to shocks.” The rules can really be credible only if they are applied with very little discretion. Otherwise – explained Dragon – as soon as you loose too, the countries are reasons not to follow them. “According to the number one Eurotower must find a balance” between credibility and flexibility. “

In the euro must “deal once and for all sources of fragility at the root,” said Dragon . We must take advantage of the current economic recovery, which has helped the ECB. “We must proceed on two policies. First – he continued – we must move from integration to convergence, through structural reforms. Second, with governance reforms we have to go by rules to common institutions “.” The Eurozone – he added – has come a long way but not enough to put an end to all doubts about his future. “

“Many indicators suggest that Europe is catching a sustainable recovery,” said Draghi stressed that the confidence of businesses and consumers are growing and that growth estimates have been revised upwards. At the same time, “the bank loans increase both on the demand and the supply. “Among the factors that are favoring the recovery in euroland, Draghi has mentioned – in addition to the Quantitative easing – the decline in crude oil prices and structural reforms.

“The euro was not created for creditors and debtors permanent” but “created with the expectation that each country would be able to stand alone, without the help of other perennial” countries. He said the ECB President Mario Draghi , in his speech in Frankfurt. The number one of the ECB stressed then that “it must be a convergence for the Union to be sustainable: any economy must be able to meet the highest standards in terms of competitiveness, employment and growth.” This imperative, he said, “has always been understood in principle in the eurozone, but it was not always put into practice, as we see with the differences in the euro area today.”