Draghi and Schaeuble hatch in Washington on formula for … – Economic

Draghi and Schaeuble hatch in Washington on formula for … – Economic

Luís Pires Reis

<= datetime time "10/10/14 10:05"> Yesterday 10:05

President of the European Central Bank (ECB) seeks investment to countries that have fiscal space, German Finance Minister insists on fiscal discipline at all costs.

In Washington, where they participate in annual meeting of the International Monetary Fund (IMF), Mario Draghi and Wolfgang Schäuble again showed divergent positions on a formula to address the lack of growth in the euro zone and the risk of deflation.

Even before the meeting, in an interview with Financial Times, ECB president stressed that “it makes sense that countries that have fiscal space to use.” And, at a time when Germany criticizing the unconventional monetary policy measures that have been released, Draghi said he was ready for more, stressing that the ECB “stands ready to change the size or composition of non-conventional interventions, as needed . “

The idea Draghi continues to joining fiscal policy necessary structural reforms in other countries. “I’m not sure that there will be good times do not reform now,” he said.

Schäuble already attacked the policy followed by the ECB, saying that “with monetary policy can not solve the problems.” “They have to be solved with the decisions of national governments, because we have an economic and fiscal union,” he added, insisting that “monetary policy can only accommodate and buy time.”

The German minister was backed his words by his Dutch counterpart and President of the Eurogroup, Jeroen Dijsselbloem, which called for countries to advance structural reforms, saying they are the only way to solve the problem of the eurozone.

In counterclockwise said the director of the IMF, Christine Lagarde, said they expect it to be done more in the eurozone as well as the Secretary of the Treasury of the United States, which reminded deflation that Japan faced in the decade of 90 “I believe this is the way that Europe is next,” said Lawrence Summers, criticizing the “focus tightly on the budget deficit, excluding investment gap, which causes poor growth.”