Draghi: the ECB will intervene again if necessary. Too much caution on reforms – Il Sole 24 Ore

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This article was published on Dec. 14, 2015 at 12:22.
The last change is the December 14, 2015 at 24:42.

“There is no doubt that if we were to step up the use of our tools to achieve our objective of price stability, we will do it. ” This was stated by the President of the European Central Bank, Mario Draghi, speaking at a conference in Bologna for the 40th anniversary of Prometeia.

“At the end of an eight-year crisis – he added – the European economy finally it seems to stand on more solid foundations. The recovery is now driven by domestic demand rather than exports; He has shown his ability to withstand the recent slowdown in world trade. Moreover, monetary policy has given a decisive boost. The instruments put in place by June 2014, in particular the purchase program of activities of public and private securities started in September last year and extended in January this year, are bringing about the desired effects. After the recalibration of our instruments implemented this month by the Governing Council, we expect inflation to reach our goal without undue delay. ”

Dragons is then returned to the theme of economic reforms, stressing that the momentum of recent years has failed. “When it comes to giving concrete reform agenda, it seems that in many eurozone countries prevail over the hesitation that determination. And certainly it should be remembered – he added Draghi – as the necessary changes are of such magnitude that it can not be implemented without a broad consensus. But we must also remember that the delay in the implementation of major structural reforms, which make a country richer and better able to face the challenges of today, may sometimes have political explanations, never cheap. ”

One of the characteristics of this crisis was the fall in the rate of potential growth in the euro area, “which is now in the euro area of ​​1% compared with 2% in United States where the crisis has also been accompanied by a lowering of the rate of potential growth. This means that even with a strong cyclical recovery growth will place a value low enough. ” A crucial aspect is the role of the investments’ values ​​lie still 15 percent below pre-crisis. ”

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