Inflation in the euro area "remains too low" in a "persistent" way, therefore I "agree" with the assessment of the ECB, according to which need a “highly accommodative” monetary policy for an “extended period of time” to bring inflation to the target, i.e. close to but below 2%. This was stated in a hearing before the Econ commission of the European Parliament by the candidate for president of the ECB Christine Lagarde, reiterating the position expressed in the written answers filed last week and thus confirming the intention of a mandate in continuity with that of the outgoing president of the Eurotower, Mario Draghi.
According to Lagarde, in the Eurozone “structural reforms are an unfinished mission in many countries. Some have started them, others have looked at reforms reluctantly, without doing much: clearly the countries that have no room for maneuver today, and they are less than half of the countries in the euro area, need to review their economic policy mix, with a pro-growth focus and use structural reforms now”.
Recalling that "now we have some growth" Lagarde explains that "these are the circumstances in which structural reforms can be more effective and produce the best results". At the same time, those countries of the euro area, who are "the majority", who instead have a public deficit between zero and 0,5% of GDP "have space" in the budget which can be used to stimulate the economy.
