News and Reviews European Economic Zone

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News and Review of European Economic Zone (Spain)

 

Spain Recession Will End Seen in 2014

Thursday, June 13, 2013

 

Spain's economy will escape a recession and growth will increase through 2015 as EU officials loosen its demands for budget cuts, economists said.

 

Spain's economy will rise for the first time since 2011di the first quarter of 2014 and will grow by 0.5% next year, according to the median forecast of 32 economists surveyed by Bloomberg monthly. Compared with the previous Spanish economy is expected to expand by around 0.3% next year. Economy will grow about 0.9% in 2015, address in the survey results.

 

"There is an expectation that fiscal consolidation will be slightly less than before," said Luigi Speranza, an economist at BNP Paribas SA in London yesterday. Prime Minister Mariano Rajoy last month to persuade the European Commission to extend the time limit for bringing back Spain's budget deficit to the EU limit for two years until 2016 remedy helped support demand.

 

Spain's budget deficit will shrink to 5.6% of GDP next year from 6.5% earlier this year, according to the survey. Last month, the survey showed that the deficit would reach 5.2% next year.

[mynameisandhy]

News and Review of European Economic Zone (Spain)

 

Spain Calls for Increase Bailout Limits

Thursday, June 13, 2013

 

Spain will urge other members of the Euro bloc next month to remove the limits provided bailout to rescue the euro zone countries being hit by the crisis, according to the Spanish Foreign Minister on Wednesday.

 

Previously Spain and some countries such as France and Italy have called for a limit increase € 500 billion bailout fund that has been set on the European Stability Mechanism (ESM), but got a rejection from Germany.

 

But with most of the Euro zone countries amid mired in recession and the desire to maintain market confidence, Jose Manuel Garcia-Margallo said that he would try again at a meeting of European Foreign Ministers on 19-20 July in Palma de Mallorca, Spain.

 

"The crisis will not likely be complete if we only have limited weapons that are so rigid," said Garcia-Margallo told reporters in a press conference with French Foreign Minister, Laurent Fabius. "A weapon is supposed to have unlimited firepower and capacity to act quickly."

[mynameisandhy]

News and Review of European Economic Zone

 

Italian Finance Minister: ECB Draghi Misunderstanding On Plan Policies

Thursday, June 13, 2013

 

European Central Bank President Mario Draghi seems "little misunderstanding" on Thursday and do not plan on tightening monetary policy, said Economy Minister Fabrizio Saccomanni Italy on Friday.

 

Saccomanni's comments came after the ECB kept interest rates unchanged on Thursday and said that he has not seen the need for measures unconventional financing to lift growth.

 

"The market interprets a message from the Federal Reserve to make that we are heading phase of monetary tightening, and perhaps the failure to reduce the interest rate (by the ECB) is interpreted as a justification" Saccomanni said at a business conference in Florence.

 

"But I believe that in this case he was just a little misunderstanding," said Saccomanni, who worked under Draghi at the Bank of Italy.

 

Saccomanni said that Draghi has indicated that he is "willing to take broader action."

[mynameisandhy]

News and Review of European Economic Zone (Portugal)

 

IMF: Portugal Still Facing Significant Risks

Friday, June 14, 2013

 

Although still in full swing, a bailout for Portugal still has to face significant risks, according to the International Monetary Fund on Thursday, a day after approving the latest financing round.

 

The IMF argues that despite strong government continues its efforts to rein in spending and make the economy more competitive, the economic outlook remains grim and the country's financial condition remains uncertain.

 

"Social and political support, which is still supporting the implementation of the recovery program, has weakened significantly," the IMF said. "The economic recovery also proved difficult to understand."

 

The IMF on Wednesday night approved easing target of cutting the deficit to Portugal, Lisbon which will give more time to tighten up the state budget. Portugal's economy continues to struggle under the pressure of austerity measures, which include tax hikes, wage cuts and cuts in health and education sectors. Portugal output is expected to shrink 2.3% this year after contracting 3.2% in 2012, with the unemployment rate likely will still be perched around 18%.

[mynameisandhy]

News and Review of European Economic Zone

 

Crisis, The Euro Zone Number of Workers Slightly

Friday, June 14, 2013

 

The number of people who have jobs in the euro zone is getting a bit in the first quarter of 2013. Official data released today shows the level of employment in the 17 countries that use the single currency is at its lowest in more than seven years.

 

Eurostat reported the number of people working in the euro zone fell 0.5% in the first quarter of 2013 compared to the last quarter of 2012. The reduction ratio is the highest since the second quarter of the data past 2009 years. This means that 145.1 million people live still has a number of livelihood or at least since the fourth quarter of 2005.

 

The worst conditions seen in Greece, where the number of employed fell 2.3% compared to the final quarter of 2012. While in Portugal, a decrease was recorded at 2.2% followed by Cyprus and Italy are the numbers of the operation fell 1%. Based on that fact, it can be concluded that the debt crisis and the fiscal pressure is really destroyed the troubled economies. On the other hand, countries with strong economic conditions it is able to open up more jobs in the first quarter, such as Austria and Germany. Eurostat also announced the release of inflation in May, where the annual increase in consumer prices so advanced 1.4% in May, or faster than the record in April, 1.2%. The ratio of inflation is still far below the central bank's medium-term target (close to 2%).

[mynameisandhy]

News and Review of European Economic Zone

 

ECB: Payments Will LTRO Experiencing Increase Next Week

Friday, June 14, 2013

 

Repayment of the loan obtained by the Euro zone banks through the Long Term Refinancing Operation (LTRO) will increase next week than this week, according to the report of the European Central Bank on Friday. Commencing from the month of January of 2013, approximately € 297 billion, or more than half of the loans are channeled through 2 ECB liquidity operations have been restored.

 

Dala report, the ECB said that the two banks will refund € 3.01 billion LTRO obtained from the first stage. While 2 other bank will return the € 180 million loan from the LTRO 2nd stage. Total loan repayment next week will exceed € 2.93 billion paid by euro zone banks this week.

 

As known earlier, the ECB steps to inject € 520 billion in loans to banks via LTRO has failed to achieve the goal. ECB fails to spur lending to households and businesses, which is essential for economic growth.

[mynameisandhy]

News and Review of European Economic Zone

 

The European Automotive Industry slumped

Monday, June 17, 2013

 

European automakers increasingly immersed in trouble, hampered economic issues that have not been well softened. The number of sales dropped in five consecutive years, and it seems to be entering its sixth year in 2013.

 

A large number of manufacturing loss. However, the government and trade unions were attempting to subvert the restructuring that led to the unfortunate number of factories is now increased, as many as 58 of the 100 largest automotive assembly plants in Europe operating under 75% of their capacity. At such levels, the car manufacturer will usually lose.

 

The increasing number of unemployed factory responses showed differences in the United States and the European automotive industry crisis. For this case, the comparison can be seen from the way the car manufacturers in Detroit, USA, fought during the period 2008 and 2009.

 

In Detroit, federal government policies triggered weakening General Motors Co. (GM) and Chrysler Group LLC. They eventually went bankrupt, forcing factories to close ranks, laying off employees, while cutting network of sellers.

 

But now GM re-grow and make a profit. The same thing happened at Chrysler, which is majority owned by Fiat SpA of Italy. Meanwhile in Europe, the government and the unions attempt to prevent the closure of the plant to maintain employment. This obstacle delaying restructuring, making it difficult for automakers to regain the advantage.

[mynameisandhy]

News and Review of European Economic Zone (Ireland)

 

IMF Thaw Irish bailout fund

Tuesday, June 18, 2013

 

IMF disbursed the next bailout for Ireland over Lisbon committed to running the bailout program. Ireland get a credit of $ 1.27 billion and this is a bailout disbursement 10th. The IMF welcomed the positive developments in the Irish economy in the second half last year. IMF sees debt ratio will reach its peak level this year and may increase economic growth next year.

 

Ireland is a member of the euro zone's bailout fund filed a second as the worsening euro zone debt problems in 2010. To get the bailout fund disbursement, then Ireland should remain a policy of economic reform. Early in June, Ireland has outlined details of a review of the banking sector loans and scheduled a stress test of the banking tests. This is an attempt to satisfy the desire Ireland European Union and IMF want to see the health of the banking sector before Ireland's bailout program ends in December 2013.

 

Meanwhile, the euro posted a slim gain in the London session. EUR / USD is now trading 1.3375; away from daily lows 1.3324

[mynameisandhy]

News and Review of European Economic Zone (UK)

 

UK inflation accelerated in May

Tuesday, June 18, 2013

 

UK inflation accelerated in May, so as to restore the pressure on consumer incomes economists feared could hinder economic recovery is fragile.

 

Consumer price inflation in the UK grew at an annual rate of 2.7% in May from 2.4% in April, according to the Office for National Statistics report, after moving flat or inclined slowed in recent months.

 

The ONS said that consumer price growth in May was driven by fuel prices, which recorded an annual increase in more than a year ago, as well as a sharp rise in airfares.

 

Bank of England, which is committed to ensuring that consumer price inflation at the 2% level, predicting that inflation will accelerate this year before being slowed down gradually until it reaches the target in early 2015. While the majority of central bank policy makers have signaled they are reluctant to provide additional support to the economy during the inflation continued to perch on top of the target.

[mynameisandhy]

News and Review of European Economic Zone (Germany)

 

ZEW: The Good German Economic Sentiment

Tuesday, June 18, 2013

 

Analysts and institutional investors looks increasingly optimistic about the economic outlook for Germany and expects an accelerated recovery in the 2nd half of 2013, according to the ZEW report Tuesday.

 

ZEW indicator of economic expectations rose to 38.5 in June from 36.4 in the previous month. Besides surpassed forecasts a rise to 38.1, the figure is also well above the historical average of 23.6. Although optimistic about future growth, 257 analysts and institutional investors surveyed by ZEW expressed slightly less optimistic about the current condition of the German economy.

 

"The results of this survey show the times when the economy is still going to improve with a rather slow pace," said ZEW President, Clemens Fuest.

 

Most analysts expect Europe's biggest economy would rebound in the second quarter, following a rise in construction activity after a bad winter. But the deep recession in the euro zone is still shadowing German growth, the companies seem to be reluctant to invest in new machinery and equipment.

[mynameisandhy]

News and Review of European Economic Zone (UK)

 

Three Board Members of BOE Want Addition Stimulus

Wednesday, June 19, 2013

 

Bank of England decided to keep its monetary policy meeting temporarily at the beginning of June. But actually there are some committee members who want to keep the monetary portion of bond purchases plus.

 

The facts revealed in the report of the meeting, released today in London. Bank of England kept its benchmark interest rate at the level of 0.5% in the June meeting and did not change the stimulus portion of the 375 billion pound figure. A total of three members of the committee to Governor Mervyn King, Paul Fisher and David Miles had requested an increase in the amount of debt purchases by 25 billion pounds to 400 billion pounds in total. But the 6 other members rejected the idea that the pro-defeat in the race for the addition of the sound stimulus. June meeting itself was the last meeting chaired by King before he was replaced by Mark Carney next month.

[mynameisandhy]

News and Review of European Economic Zone (UK)

 

BoE Minutes: MPC Member Assessing Policy Still 'Consistent'

Wednesday, June 19, 2013

 

Efforts Bank of England Governor Mervyn King to push up the stimulus to the UK economy at the end of his term re-encounter failure, based on the central bank's policy meeting minutes released Wednesday.

 

As expected, calls King to add £ 25 billion ($ 39.2 billion) into the asset purchase program to accelerate the growth of only the support of two members of the Monetary Policy Committee, which is David Miles and Paul Fisher. All 3 members of the policy found fresh stimulus to boost output without triggering inflation, while warning about the risk of new turmoil in the Euro zone which was hit by the recession.

 

MPC this month has decided to keep its benchmark interest rate unchanged at 0.5% and continue the bond purchase program worth £ 375 billion. Within minutes it was seen that the majority of 9 policymakers assess if the current policy "in line" and a program of bond purchases is still an effective policy tool. They argue that the potential addition of further stimulus will outweigh the benefits, which may encourage investors to take excessive risks.

 

Referring to recent survey data, the rate of inflation in the UK is expected to reach an annual rate of about 3% in May and will still remain above the BoE's target of 2% for the rest of this year. But economic growth is likely to show acceleration.

[mynameisandhy]

News and Review of European Economic Zone

 

Ahead of FOMC, European stocks Tend Mixed

Wednesday, June 19, 2013

 

Shares in major European markets tend to move in mixed on Wednesday, as investors were cautious ahead of the Federal Reserve's monetary policy statement is crucial U.S. after 2-day meeting.

 

Germany's DAX and France's CAC survive in the green zone, with each collecting 0.4% and 0.05%. While the UK's FTSE slipped 0.05% should be within 3 hours of trading.

 

Market participants in the whole world is waiting for and will monitor closely every Fed statement, which is likely to signal a future of program purchases $ 85 billion in bonds per month. The Federal Open Market Committee scheduled to announce policy decisions and their latest economic projections at 01.00 pm tonight, which will be followed by a press conference Fed Chairman Ben Bernanke 30 minutes later.

 

In Europe, the G8 leaders have agreed to fight tax evasion and perform new preventive measures at a summit in Northern Ireland. They also urged European Union countries to amend laws in order to stop the run companies outside the region to profit and pay less tax.

 

Of Cyprus, President Nicos Anastasiades has called for euro zone leaders to revise requirements for bailout worth € 10 billion ($ 13.4 billion). Anastasiades warned that strict controls on capital imposed on member countries of the Euro bloc began to undermine the island nation's economy.

[mynameisandhy]

News and Review of European Economic Zone

 

Markit: Contractions Manufacturing of Zone Euro Slows in Month in June

Thursday, June 20, 2013

 

Pressure of zone crisis Euro visible subsided in month of June, the with the manufacturing sector berkontraksi in the slowest pace in 16-months, according to a report Markit the day Thursday.

 

Based on survey results initial, index of manufacturing activity bloc 17-countries rose become 48.7 of 48.3 on in May, which surpassed expectations of a rise thin become 48.4. Whereas composite index output rose to its highest level 15-month became 48.9 of 47.7 in in May. Activity index service sector also noted best results since month March last year with the rose become 48.6.

 

In level countries, index French manufacturing surged to the highest position 16-moon become 48.3. While the manufacturing index Germany must slipping to its lowest level 2-months.

 

"Despite initial survey results PMI showed that the zone Euro back experiencing contraction in June, however began to visible sign of-sign of convince that the pressure continues to subside," said Chris Williamson, chief economist Markit, in a note.

[mynameisandhy]

News and Review of European Economic Zone (UK)

 

UK Retail Sales Rebound in May

Thursday, June 20, 2013

 

UK retail sales is able to record solid growth in May after showing a weak performance in April, as consumers are interested to utilize the majority of supermarket promotion program.

 

Based on the reports of the Office for National Statistics (ONS), retail sales volumes rose by 2.1% last month and 1.9% higher than a year ago. The figure was higher than expectations for a 0.8% rise and a monthly rate of 0.1% to an annual rate.

 

The data also show that UK consumers are still willing to spend their money in the household budget although still depressed by weak wage growth and rising prices. This condition can be strengthened hopes of accelerating economic recovery in the 2nd quarter.

 

As known earlier, the UK economy is able to expand 0.3% in the first 3 months of 2013. Bank of England forecasts economic growth will accelerate to 0.5% in the April-June period.

[mynameisandhy]

News and Review of European Economic Zone

 

Draghi: ECB Ready to Use Step by Step 'No Ordinary'

Thursday, June 20, 2013

 

European Central Bank would not hesitate to use interest rates and measures 'unusual' others to help improve the economy of the euro zone, according to ECB President Mario Draghi's statement on Tuesday.

 

"We still have some other policy measures, including interest rate policies and measures standard 'non-standard', which can be launched at any time if conditions so require," Draghi said at a conference in Jerusalem, Israel.

 

Nevertheless, the ECB president still warned that however, some of these measures may have "unintended consequences" that must be dealt with appropriately.

 

Earlier this month the ECB has refrained from launching additional measures to help boost the euro zone economy, although predicting the recession will be deep throughout the year 2013. The move effectively has put pressure on the government to reform the economy and reduce the level of their debt. While the ECB's policy council to discuss other options aimed at spurring private sector loan, such as a negative deposit rates and loan programs for small businesses mendorongn, Draghi added.

[mynameisandhy]

News and Review of European Economic Zone (Greece)

 

Greece Facing New Threat

Friday, June 21, 2013

 

Greek coalition government received a double blow on Thursday, as the heated discussion about the state broadcasting company to bring closure threat of a split in the government and renewed concerns about the financial bailout program. Failure in the discussion of potentially pushing one of three partners in the coalition party to withdraw support from the government, which increasingly emphasized the severe internal crisis coalition.

 

"No agreement has been reached," said the leader of Democratic Left, Fotis Kouvelis, after holding a meeting with the heads of coalition parties other 2. Lawmakers from the Democratic Left is scheduled to hold a special meeting on Friday, to decide the future of the party in the coalition government.

 

In a separate statement on national television, Prime Minister Antonis Samaras good and Socialist party leader Evangelos Venizelos had signaled they were ready to proceed without the support of the Democratic Left government. Combined seat 2nd parties in parliament have been sufficient to provide support for a majority government.

 

Meanwhile, euro zone finance ministers tend to still put aside the question of the potential financing gap in Greece's bailout program amid a report that some euro zone central banks refused to roll over Greek bonds. After undergoing a meeting in Luxembourg, the ministers urged Athens to meet the immediate requirements of the bailout program, so it can guarantee a good review results to the EU, IMF and ECB.

[mynameisandhy]

News and Review of European Economic Zone

 

Spanish and Italian Bond Yields Rise Amid ECB Betting

Tuesday, June 25, 2013

 

Spanish and Italian bond yields rose for the first time in four days amid speculation that the European Central Bank will maintain an accommodative monetary policy to slow down even though the U.S. considering its stimulus plan.

 

Yields on Spanish 10-year oblgasi down from the highest level in almost three months as a member of the ECB executive board, Benoit Coeure said that no doubt that out of the current agency policy "away" from the word allow and before President Mario Draghi speaks in Berlin on this day. German bond yields of the 10-year fell from its highest level in more than a year as investors worried the cash crisis in China will slow growth may spur demand for safe assets.

 

"Yields have moved higher, given the current conditions," said Allan von Mehren, chief analyst at Danske Bank A / S in Copenhagen. "It does not make sense for higher interest rates when the yield on Italy and Spain will move higher. It will be very interesting to see what would Draghi said in a speech today. People anxious with a big problem in China, and if it could have an impact worse. "

[mynameisandhy]

News and Review of European Economic Zone

 

ECB's Coeure: Still Much To Finish Loose Monetary Policy

Tuesday, June 25, 2013

 

The European Central Bank is still far from the end accommodative monetary policy, one of the main banker's central bank said on Tuesday.

 

Speaking at a Euromoney conference in the British capital, Benoit Coeure's comments came as global markets have struggled to digest an indication of the U.S. Federal Reserve is considering a policy of reducing the bond purchases also known as QE3.

 

In his speech, Mr. Couere, one of the six main members of the executive board of the ECB, said that he did not want to "give any clues" about the change in the monetary policy of the euro zone in the near future. "A reversal would not be justified by current economic conditions," he said. He added that economic growth expected to remain weak this year and inflation is "obviously" still below the ECB's target of 2%. He said that there are other measures, both standard and non-standard. "What can we describe when needed."

 

"Therefore, at the current point in time, there can be no doubt that monetary policy we have" come out "too far and will remain accommodative," he added.

 

 

He said, however, that the current condition "is not permanent." He said that interest rates "will eventually increase, triggered by a tightening of monetary policy, by lowering the risk of a global appeal, and / or other external events."

[mynameisandhy]

News and Review of European Economic Zone

 

China news Restore the European Market Sentiment

Tuesday, June 25, 2013

 

The majority of European stocks rebounded capable in Tuesday trading, with a partial recovery of the previous session's losses, as investor sentiment terobatinya by news from China. People's Bank of China is said to have held a press conference to try to ease concerns about the impact of the credit crisis in the country.

 

"We can see a decent movement in European stock markets today, after the Chinese central bank's efforts to ease concerns about bank funding costs spike in China received a positive response from market participants at the end of the Asian session," said Ishaq Siddiqi, market analyst at ETX Capital.

 

German DAX and the French CAC40 able to back up the positive territory, with each collecting 1.4% and 1.2%. Rebound is also seen in the UK FTSE, which is appreciated by around 0.8% in the first 3 hours of trading.

 

After undergoing 20 hours meeting at the end of last week, EU Commissioner Economic and monetary affairs, Olli Rehn, the ministers optimistic that Europe will be able to reach agreement on banking reform in a meeting Wednesday in Brussels.

 

While the latest developments of Greek Prime Minister Antonis Samaras said if it had been a cabinet reshuffle on Monday night, following the discharge of one of the parties of the government coalition. Democratic Left decided to withdraw support to the coalition government because of a dispute about the closure of state-owned broadcaster.

[mynameisandhy]

News and Review of European Economic Zone

 

ECB President: Economic Slowdown Euro Not Our Responsibility

Wednesday, June 26, 2013

 

European Central Bank (ECB) has repeatedly called on all parties not to rely too big expectations for authority. In a statement today, the ECB president insists his side is not responsible for the economic slowdown and decline in the competitiveness of European businesses.

 

Mario Draghi called on all EU countries to improve its economic performance. ECB just trying to help the region's economy via monetary supportive action. "Monetary policy can not create real economic growth," he said in front of the media today. He asked European countries not only expect to be a strategic move of the central bank to promote competitiveness. "If economic growth slows due to the weakening or loss of the company's market share, it is not solely the responsibility of the central bank," he explained. According to Draghi, beyond its capacity growth performance of the ECB as an institution.

 

The central banks of the euro zone has so far support what is done by the ECB, including Outright Monetary Transactions program, which opened the door for the ECB to buy government bonds under certain conditions. This aid scheme has improved conditions in financial markets and investor confidence in the euro zone. OMT also helped to create stability in the European bond market.

 

"The ECB is doing nothing to build stability in the market and boost the economy, 'said Draghi. He claimed some progress in the eurozone began to look as time goes on.

 

Even so, the central bank president asked for the continuation of structural reforms, fiscal consolidation and strong economic relays between members of the Euro. Draghi said European banking union as one form of integration. The Government also asked to complete the program as soon as possible rescue failing banks. Exchange rate of EUR / USD was observed at the level of 1.3043.

[mynameisandhy]

News and Review of European Economic Zone (France)

 

French official in Phase Recession

Wednesday, June 26, 2013

 

Figures gross domestic product (GDP) declined in the first quarter of France 2013. The fact is increasingly ensure that the country's economy in the second largest economy the world has entered a recession. According to France's statistics agency reported a few moments ago.

 

The French economy contracted 0.2% in the first quarter compared to the last quarter of 2012. In the fourth quarter of last year, GDP also fell 0.2% compared to the previous quarter as reported by the statistics office Insee. Throughout 2009, perekonmian France is already experiencing negative GDP, but the country is not to enter into a recession because of the decline of economic performance does not occur for two consecutive quarters.

 

GDP data on Wednesday to make sure that the data early in the first quarter report, released last May had been accurate. This news is certainly not a good news for the Paris government, which is keen to reduce the deficit and expanding employment.

 

President Francois Hollande still maintain the target reduction in unemployment. However Insee last week projected that the unemployment rate will remain jumped more than 11.1% at the end of this year. Insee also predicted the French economy increased slowly in the second quarter of this year despite an annual basis, GDP is predicted to be lower in 2013 compared to 0.1% in 2012.

 

Various components of the French economy is being bad-bad. Consumer spending fell 0.1% in the first quarter of 2013, compared to the previous quarter. While exports fell 0.4% and the non-financial corporate investment fell 1%. The EUR / USD is currently observed at the level of 1.3043.

[mynameisandhy]

News and Review of European Economic Zone (UK)

 

BOE: There Risks If Interest Rate Up Sharply Generally Arrived-arrives

Wednesday, June 26, 2013

 

Bank of England says that the lenders are very vulnerable to an increase in long term interest rates as they warned that the level of confidence in the financial system is still fragile.

 

The central bank today recommend depiction for a re-view of the bank against the risk of interest rates, which he said was not understood properly. The views will be conducted by Prundential Regulation Authority, which they would report back in Spetember.

 

"A view to financial stability still covered risks from the global recovery is still weak and uneven in the euro area," said BOE in the statements of financial stability which is done twice a year. "Risk can be real if global interest rates long-term increased suddenly of the current is still the lowest level in history or if the difference in credit widened. "

[mynameisandhy]

News and Review of European Economic Zone

 

Draghi: Fiscal Deficit Cuts Should Create Growth

Wednesday, June 26, 2013

 

European Central Bank President Mario Draghi said that countries in the euro area are attempting to reduce their budget deficits with tax increases and limit the need to prioritize investments to promote economic growth.

 

State must "ensure that the fiscal consolidation, which is in need to withstand the level of debt, it should be able to make growth as friendly as possible," Draghi said today in a speech at the French National Assembly in Paris. By relying on tax increases will at least help in the use of income citizens. Prioritize capital investment over current spending will be more lay the basis for future growth. "

 

Countries in the euro area, including France, Spain and Italy have been given more time by the European Commission to bring their budget deficits to the regulatory region. The ECB has cut its benchmark rate to a record low of 0.5% in May amid a long recession in the euro zone.

 

"It is important to recognize that there are limits to what monetary policy can accomplish," said Draghi. Monetary policy can not create real economic growth. If growth is slow because of the economy does not produce enough or because the companies had lost its competitive edge, and for that matter beyond the power of the central bank to fix it. "

[traderx4]

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