In an interview with German financial newspaper Handelsblatt , Mario Draghi said that interest rates should remain low in the euro area for an extended period of time.
“The interest has been very low, there is a long period, and will probably remain so for some time,” he says. By keeping interest rates low, the European Central Bank aims to stimulate the economy and achieve price stability. One of the hazards anticipated by the banker is the entry into a downward spiral of prices and a decrease of purchase . by consumers
The Italian economist calls on European governments to put in place efficient structural reforms, stressing the need to remove the bureaucracy and the tax burden, “If we do not solve this, our growth will remain weak. ”
The Draghi alert extends to Germany, to emphasize that “all” eurozone countries must do more to correct this serious disadvantage in terms of European competitiveness.
Recommendations undergo increase investment in research, education, and digital agenda, along with a reduction in taxes.
One of the hazards anticipated by the banker is the entry into a downward spiral of prices and a decrease of purchase by consumers. “The risk we can not fulfill our mandate of price stability is higher than six months ago,” acknowledges. Political career in Italy out of the question
The President of the European Central Bank advances that earlier this year the new design measures is a technical preparation phase, should it become necessary to react to a long period of low inflation.
The situation in Greece is another the subjects focused in this interview with the German newspaper, although Draghi not Alonge on the subject. “Now the Greek voters have to decide the composition of Parliament and the Government”, he said.
Asked about his political ambitions, at a time when President Giorgio Napolitano announced he will resign, Draghi that has been governor of the Italian central bank, of course. “I do not want to be political. My term as president of the European Central Bank last until the year 2019, “concludes
tags: European Central Bank, deflation, Mario Draghi,
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