The Governing Council of the ECB "is unanimous in its commitment to use other non-conventional instruments within its mandate, should it become necessary to face the risks of too long a period of low inflation". This was reiterated today by the president of the Eurotower, Mario Draghi, during a speech to the Finnish Parliament.
Draghi then underlined that economic growth in Euroland has suffered a "loss of momentum" and that the prospects for recovery remain "surrounded by various risks: the recovery will be undermined by high unemployment, the consistency of unused production capacity and necessary budget".
All this in a context of inflation that is too low: in the euro area it is at 0,4%, while the target of the ECB - which by statute has the supervision of price stability as its first mandate - is at a lower level but close to 2%.
On the political level, "in the medium term - continued Draghi - we must explore various options to ensure" a better functioning of the monetary union: during the crisis the euro countries made significant efforts to strengthen financial discipline and the solidity of the eurozone.
Draghi has once again called for greater interdependence in the exercise of economic choices: "I believe that we need greater shared sovereignty".
The Eurotower number one also went back to indicating that monetary policy alone is not enough for a trend reversal in the euro area: "All political actors - he said - must do their part, at national and at European level”, defining a “clear strategy to put the economy back on the path to growth”.
