"We need to a new pact that prevents the re-emergence of the challenges just faced and which, above all, strengthens the constitutional architecture of the euro area. We have to look ahead, moving from stability to progress towards prosperity”. The president of the ECB said Mario Draghi, in his speech at the inauguration of the academic year of the Catholic University of Milan.
On the front of the quantitative easing, "should we become convinced" that the current securities purchase plan should not be enough to counter the obstacles to price stability, "we will examine ways to intensify it to achieve our goal - Draghi reiterated, confirming what the ECB said in monthly bulletin published today –. We are facing a situation in which price dynamics are very weak, the macroeconomic scenario is still uncertain. For these reasons, the Council has undertaken to review the degree of monetary accommodation at its next meeting in December”.
According to Draghi, the program implemented so far “has undoubtedly been effective. However, we need to assess whether, with the weakening of the global economy, it is also effective in countering the adverse pressures that could hinder a return to price stability in the medium term. If we are convinced otherwise, we will look at ways to intensify it to achieve our goal. Today as yesterday we are not constrained in our ability to intervene: we have many tools at our disposal".
Draghi added that the unacceptable number of unemployed, many of whom, too many are young, was the price Europe paid for the economic crisis. "Everyone, but especially the younger generation, has paid a very high price for the crisis." The crisis, Draghi went on, "has made evident the imbalances that had been accumulating in previous years, certainly due to the serious errors in the economic policies of the nation states, but also due to shortcomings in the European institutional architecture". These “have then contributed to making the response of economic policy to the crisis itself slow and cumbersome. The unacceptable number of unemployed, many of whom, too many are young, was the price paid".
