Draghi: «Ready to consider all available instruments. Countries go on with reforms»
by Emiliano Biaggio
The European central bank doesn't change its policy: once again the Governing Council of the ECB decided to don't review the interest rate on the main refinancing operations, the interest rate on the marginal lending facility, and the interests rate on the deposit facility, which will remain unchanged at 0.25%, 0.75% and 0.00% respectively. «The Governing Council will maintain an accommodative stance of monetary policy for as long as necessary», reiterated ECB president Mario Draghi during the press conference held in Frankfurt after the governing council meeting. The Eurotower policy «will assist the gradual economic recovery in the euro area», added Mr. Draghi. So «we firmly reiterate our forward guidance that we continue to expect the key ECB interest rates to remain at present or lower levels for an extended period of time». With regard to money market conditions and their potential impact on monetary policy stance, «we are monitoring developments closely and are ready to consider all available instruments». Draghi came back to repeat what he already stated during the last three months: due to the economic conditions and the current background everything remain unchanged. The same has to be for all the Eurozone member states, which means to carry on with the current programme. «As regards fiscal policies, it is important not to unravel past efforts but to sustain fiscal consolidation over the medium term», emphasized the ECB president. «Fiscal strategies should be in line with the fiscal compact and should ensure a growth-friendly composition of consolidation which combines improving the quality and efficiency of public services with minimising distortionary effects of taxation». In Draghi's opinion «when accompanied by the decisive implementation of structural reforms, this will further support the gradual economic recovery in the Euro area and have a positive impact on public finances». To the governments of the eighteen there are clear suggestions. «Reforms in product and labour markets and a rigorous enactment of Single Market policies warrant particular focus to improve the outlook for economic growth and to foster job creation in an environment of high unemployment». There is still a lot work to do, underlined Draghi. The economy remains «fragile» and at the moment «is too early to declare the eurozone debt crisis over».
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| Mario Draghi |
The European central bank doesn't change its policy: once again the Governing Council of the ECB decided to don't review the interest rate on the main refinancing operations, the interest rate on the marginal lending facility, and the interests rate on the deposit facility, which will remain unchanged at 0.25%, 0.75% and 0.00% respectively. «The Governing Council will maintain an accommodative stance of monetary policy for as long as necessary», reiterated ECB president Mario Draghi during the press conference held in Frankfurt after the governing council meeting. The Eurotower policy «will assist the gradual economic recovery in the euro area», added Mr. Draghi. So «we firmly reiterate our forward guidance that we continue to expect the key ECB interest rates to remain at present or lower levels for an extended period of time». With regard to money market conditions and their potential impact on monetary policy stance, «we are monitoring developments closely and are ready to consider all available instruments». Draghi came back to repeat what he already stated during the last three months: due to the economic conditions and the current background everything remain unchanged. The same has to be for all the Eurozone member states, which means to carry on with the current programme. «As regards fiscal policies, it is important not to unravel past efforts but to sustain fiscal consolidation over the medium term», emphasized the ECB president. «Fiscal strategies should be in line with the fiscal compact and should ensure a growth-friendly composition of consolidation which combines improving the quality and efficiency of public services with minimising distortionary effects of taxation». In Draghi's opinion «when accompanied by the decisive implementation of structural reforms, this will further support the gradual economic recovery in the Euro area and have a positive impact on public finances». To the governments of the eighteen there are clear suggestions. «Reforms in product and labour markets and a rigorous enactment of Single Market policies warrant particular focus to improve the outlook for economic growth and to foster job creation in an environment of high unemployment». There is still a lot work to do, underlined Draghi. The economy remains «fragile» and at the moment «is too early to declare the eurozone debt crisis over».
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