In Europe, a violent dispute over the price in the economic and financial policy is kindled. Now ECB chief Mario Draghi has turned into the discussion. He calls for more investment and says: “We have done with lowest interest rates and a large number of unconventional measures our part.”
ECB President Mario Draghifordert additional policy efforts and more investment in the fight against the European economic crisis. While the United States economy has had regained its pre-crisis, the situation in the Euro-zone look much less rosy, Draghi said on Thursday evening, according to the transcript in Milan. Blame lies mainly in Europe significantly lower level of investment.
“We will see a sustained recovery until that does not change.” Only through structural reforms, fiscal policy and monetary policy “hand in hand” the problems could be solved and prosper the currency union.
Draghi calls for growth-friendly fiscal policy
The monetary policy of the European Central Bank (ECB) ‘ve done with lowest interest rates and a large number of unconventional measures their part, Draghi said on the eve of a meeting of finance ministers and central bankers from EU and Euro-states in the northern Italian metropolis.
Now the policy is required to address structural barriers the economy to free themselves from rigid rules about the labor market and to leverage existing fiscal room for maneuver under the rules of the Stability and Growth Pact.
“Governments can to support productive investment in the already existing framework can accommodate and make fiscal policy more growth-friendly, for example by tax cuts or by reducing unproductive expenditures. “
This is what the new ten-Euro note from
Violent conflict over economic policy
In Europe is currently hotly debated at the right price in the economic and financial policy. While countries want to be like France and Italy to spend more money and want it even make back more debt, Germany insists in Large and whole on the adopted austerity.
the growth of Europe nevertheless stimulate beat Germany and France in a Reuters present letter of the two Finance Minister Wolfgang Schäuble and Michel Sapin, among other so-called project bonds ago, on for example the maintenance of the infrastructure, ie about roads and bridges, to be financed.
In addition to the European Investment Bank also reinforced promote risky infrastructure projects to trigger private investment.
This is the most powerful weapon the ECB
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