Speaking at the 9th Delphi Economic Conference, Mr. Stournaras pointed out that interest rates have remained at a fairly high level for a long time, so as he said “if we do not quickly correct this restrictive policy, the eurozone economy risks losing its first wave of recovery which seems to have begun”.
As he explained, the ECB should not operate without being influenced and following the decisions of the Federal Reserve Bank of the USA (FED). On the contrary, it would be good, as he said, to differentiate himself and take the lead for many reasons. First of all, the US and the Eurozone are in different phases of the economic cycle. The growth rate of the European economy is close to 0%, while in the US it is around 2%, and it is fueled by the fiscal deficit which causes inflationary pressures. In any case, the causes of inflation in the Eurozone and the US differ from each other.
The governor of the BoE defended the policy followed by the ECB to reduce inflation, underlining that the criticism that has been leveled is unfair as its retreat to 2.4% shows that it has been effective.
Referring to the course of the Greek economy, he appeared optimistic, estimating that in the medium term it will continue to show an average growth rate higher (2.5%) than that of the Eurozone (2%).
He reiterated that the country should henceforth follow a strict fiscal policy by showing a primary surplus in the Budget for the following years without interruption. At the same time, it should proceed with reforms in areas that are lagging behind such as the administration of Justice, Education and Public Administration.
Finally, the head of the Council of Ministers estimated that at the present stage there is a “deficit of political leadership” in Europe and the USA.
Source: RES-MPE
Wolfgang Schäuble: “Merkel did not dare – History will judge her”
Kasselakis at the Delphi Forum: In the European elections the gap will “close” and SYRIZA “will surprise Europe and the country”
In one year the radical reconstruction of Aristotelous Square – Exclusive report from Eleftherostypos.gr
#Stournaras #Economic #Forum #cut #interest #rates #time #Europe #risks #losing #growth #train