"Governments need to proceed with the reforms of the labor and goods and services markets in order to strengthen competitiveness, increase potential growth, create employment opportunities and promote the euro area's capacity to adapt". This was said in the introduction to the institute's annual report by the president of the ECB, Mario Draghi, who also specified, after opening during last Thursday's press conference on the hypothesis of Quantitative Easing, that "it is premature", as he had hinted earlier also Yves Mersch, a member of the board of the ECB who spoke in London.
“Looking forward – adds Draghi – it will be important not to frustrate the efforts made in the past but to support the consolidation of public finances in the medium term, also in consideration of the fact that the debt/GDP ratios remain high. On this front, strategies should be in line with the Fiscal Compact. They should ensure a growth-friendly adjustment that combines the improvement of the quality and efficiency of public services with the minimization of the distortive effects of taxation”.
