ECB’s Draghi: Expect EMU Recovery To Start In 2nd Half 2013

View Comments

FRANKFURT (MNI) – The Eurozone is expected to pull out of recession
in the second half of 2013, European Central Bank President Mario Draghi
said in an interview Friday on France’s Europe 1 radio station.

Draghi said the ECB’s updated forecasts to be released next week
would give a “full picture” for 2013 and 2014. He pointed to the ECB’s
current forecasts as signalling that a recovery in the euro area as a
whole “would start probably in the second half of 2013.”

Asked if that means the dark clouds over Europe will be lifted in
2013, Draghi responded: “I hope so.”

Draghi welcomed the Eurogroup’s decisions on Greece this week,
saying the deal’s “major contribution” was to put Greece on the path
toward debt sustainability. He also highlighted the “commitment of the
leaders to intervene further, to finance further in future if Greece
will have a primary surplus.”

The agreement, announced early Tuesday morning, will “give Greece a
chance to continue its reforms,” Draghi said. Asked if this meant Greece
would remain in the Eurozone, he responded “the answer is yes.”

Draghi also said the time had arrived for European leaders to
deepen their integration efforts in all areas, including towards
banking, fiscal, economic and political union.

“This is the time for a supplementary effort,” which includes
learning to share more sovereignty, Draghi said.

Draghi stressed that the ECB remains ready to act as necessary, and
with “no limit,” though he reiterated this did not mean without
conditions on governments. He noted, “we should not forget how we
arrived at our present situation.”

Draghi defended the fiscal consolidation measures being enacted by
Eurozone governments as “inevitable” after years of wrong policies, even
if “it is certainly true that fiscal consolidation results in a short
term economic contraction.”

That contraction should be cushioned by structural reforms to boost
competitiveness “as quickly as possible.” There is also a need to
“reduce rigidity” in labor markets as well as in products and services,
he said.

— Frankfurt bureau: +49 69 720 142; email:

[TOPICS: M$X$$$,M$$EC$,MGX$$$,MT$$$$,M$$CR$]


All|Economic Data

Market News International


© Copyright 2015 ForexLive™  |  Advertise With Us  |  Login To Comment  |  Sitemap

HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance. You could lose some or all of your initial investment; do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions.

ADVISORY WARNING: FOREXLIVE™ provides references and links to selected blogs and other sources of economic and market information as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the blogs or other sources of information. Clients and prospects are advised to carefully consider the opinions and analysis offered in the blogs or other information sources in the context of the client or prospect's individual analysis and decision making. None of the blogs or other sources of information is to be considered as constituting a track record. Past performance is no guarantee of future results and FOREXLIVE™ specifically advises clients and prospects to carefully review all claims and representations made by advisors, bloggers, money managers and system vendors before investing any funds or opening an account with any Forex dealer. Any news, opinions, research, data, or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. FOREXLIVE™ expressly disclaims any liability for any lost principal or profits without limitation which may arise directly or indirectly from the use of or reliance on such information. As with all such advisory services, past results are never a guarantee of future results.