Date: 02/01/2015 10:51 clock
The European Central Bank after presentation of their chief Mario Draghi strongly required in the maintenance of price stability than they were six months ago. “The risk that we will not fulfill our mandate of price stability, at least higher than six months ago,” the ECB president said in an interview with the newspaper “Handelsblatt”.
The inflation rate was lying in July averaged 0.3 percent. The risk of deflation, or a decline in prices and wages, is “not entirely excluded, but it is limited,” Draghi said. If inflation but long remain too low could “put people to further reduced in price and easy to move their spending.” It was not ready yet. “But we have to go against this risk.” The ECB is price stability ensures moves inflation just below two percent
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Draghi explained that the purchase of government bonds is one of the tools that the ECB can use to fulfill its mandate. However, it should not come to public finance. The ECB chief again called for structural reforms in Europe, especially flexible labor markets, less bureaucracy and lower taxes. Here you’ll be “clearly too slow” progress. All countries in the euro zone would have to do more, and Germany. The monetary policy of the ECB would be much more effective, governments would implement structural reforms
CDU economic policy. No money pumped into problem countries
The CDU politician Michael Fuchs economy Draghi warned not to pumps with government bond purchases by the central bank more money to Greece and other euro-countries in difficulty. Decisions, the European Central Bank (ECB) to such purchases, “then the pressure will go away from these countries to make reforms,” said the deputy leader of the Union in Germany radio. “And I would be grateful if Mr Draghi would make a few remarks in this direction.”
Fuchs expressed the view that it over in the next ECB meetings still heated debate Attending possible government bond purchases, before which warns Bundesbank President Jens Weidmann
ZEW President. “Great discomfort”
The President the Centre for European Economic Research (ZEW), Clemens Fuest, warned in this context, a resurgence of the euro crisis. The monetary policy of the ECB holds it for the wrong means to solve the fiscal crisis in member countries. “I’m preparing great discomfort, which by the ECB everything is expected”, Fuest told the news magazine “Focus”.
“No Plan B for the Euro-zone”
In a crisis, Draghi does not see the euro zone but. Europe was in a rather lengthy period of weakness. The euro zone will not break apart. “There is therefore no Plan B.” Draghi expressed understanding for concerns of savers who saw that the returns on their deposits shrank. The interest was for a long time “very, very low.” – And that would “probably a time to come”
politician he did not want, Draghi also said. In pointing out that his compatriot Giorgio Napolitano wants to resign shortly as president of Italy Draghi said his mandate as ECB chief would last until of 2019.
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