They loom over the future of the Eurozone three "risks": failure to implement the policies of consolidation of public finances, the macroeconomic risks that could also affect the banking sector, and the negative effects oncredit disbursement which would derive from the first two risks. In recent months there have been "some improvements", "but the road ahead of us remains long and uphill, because we must implement all the measures taken". It seems to agree with the pessimistic forecasts of the International Monetary Fund, President of the European Central Bank Mario Draghi.
Much of the game is in the hands of politics. “The European and world economy continue to face serious challenges over time. Politics must continue to implement the agreed measures and must do so with determination”. During this morning's hearing in the European Parliament, as chairman of the Systemic Risk Board, Draghi said that only in this way could "investor confidence" be gained.
But the ECB president insists on the measures to be implemented as quickly as possible. To overcome the crisis and hope for a recovery, it is essential to ease the credit crunch: “It is crucial to revitalize the provision of credit" he has declared. According to the former governor of Bank of Italy, we observe "reductions in market tensions" but "financial activity remains unbalanced in various parts of the system".
As regards bank funding risks, the european systemic risk board (esrb) will launch in the first half of 2013 "further proposals in the field of macro-prudential policy, in particular on the vulnerabilities linked to bank financing”.
On the problems of Greece Draghi believes that Athens has made "visible and significant progress" in the process of reforms but must “do more”. To give a "final assessment", however, we must "wait for the Troika report" (EU, ECB, IMF).
OMT – The new plan for possible calming purchases of ECB government bonds (OMT) is strictly conditional and for this reason "will not replace" any "lack of political measures". According to the planned plans, once launched "the OMT provides for unlimited ex ante purchases, but not without conditions", recalled Draghi. “Exit from the WTO will take place when its objectives have been achieved, or when there is a lack of implementation by the countries of the programs envisaged by conditionality”. Furthermore, Draghi reiterated, purchases through the WTO will be suspended during the inspection phases of the implementation of the national programs of any beneficiary countries.
