- Youth employment against rules of fairness
- ECB rates to remain at current level for long period
- Bank review removed obstacle to reviving growth
- Monetary policy alone will not be enough to revive growth
- Fiscal policy not enough without structural reforms
- ECB committed to expanding balance sheet and take further unconventional policy measures if medium inflation expectations worsen
Speech by Mario Draghi, President of the ECB, to mark the centenary of the birth of Federico Caffè at the Lecture room of the School of Economics and Business
The full speech is here
“Monetary policy has done and will continue to do its part but it is not enough. On the demand side, just bear in mind that since 2007 private investment in the euro area has fallen by 15% and public investment by 12%.
Let’s not forget that in some countries of the euro area unemployment was already high even before the crisis. At the same time there is ample evidence that a significant proportion of the current unemployment is structural.
A fiscal policy which, in compliance with the existing rules, may see more investment and lower taxes, together with an accommodative monetary policy are not enough to generate a revival of strong and sustainable growth without the necessary structural reforms in product and labour markets.”
