"The current situation is that there is a dialogue (between Italy and Europe, ed.), I am always confident that an agreement can be reached". These are the words pronounced in front of the EU Parliament by the president of the European Central Bank, Mario Draghi, on news arrived over the weekend on the manoeuvre. “I don't see the opportunity to comment on the Italian situation, I have always said that countries with high debts must reduce it, if they reduce it they will strengthen themselves. I won't add anything else ”, added Draghi.
“Unsustainable policies lead eventually to ad socially painful and financially costly adjustments which can undermine the cohesion of the monetary union. The number one of the Eurotower in this case has not mentioned names, but the reference to our country seems to be clear enough. “As we have seen in the past crisis continued Draghi – the eurozone can be exposed to risks originating from unsustainable national policies resulting from excessive levels of debt, vulnerability of the financial sector and/or lack of competitiveness'.
Speaking ofeconomic performance of the Eurozone, Draghi confirmed again that “the data available since my last visit in September has been weaker than expected. A gradual slowdown is normal as the expansion matures and growth converges towards long-term potential. Some of the slowdown may also be temporary. At the same time, risks related to protectionism, vulnerability in emerging markets and volatility in financial markets remain prominent.
On the future of quantitative easing, Draghi again outlines the path already traced: it closes in December: “The Board of Governors continues to anticipate that, subject to upcoming data on medium-term inflation prospects, net asset purchases will end at the end of December. At the same time, the current uncertainties still require patience, prudence and persistence in calibrating the profile of our monetary policy", added Draghi, according to which "a significant monetary policy stimulus is still needed to support the further increase in price pressures internal and developments in the medium term”.
We recall that the date for the decision on the securities purchase program (Qe) envisaged at the meeting on 13 December is getting closer and closer.
Speaking of the reform of the Eurozone, Draghi then gave his opinion support for the Eurobudget idea endorsed by France and Germany: "The euro area needs a budgetary instrument that can help maintain convergence (among the member countries, ed.) in the face of exogenous shocks, thus supporting the monetary policy" of the ECB, explained Mario Draghi. The use of this budget "should be conditional on economic and budgetary policies that are sound and respectful of the government framework of the Union".
