FRANKFURT (MNI) – There must be “urgent” implementation of the
decisions taken by the Eurozone leaders at recent summits to bolster the
capacity of Europe’s bailout fund, European Central Bank President Mario
Draghi said on Friday.
“Where is the implementation of these long-standing decisions?”
Draghi asked rhetorically in a speech at the European Banking Congress
here.
He noted that a significant amount of time that had elapsed since
the summit at which leaders decided to increase the firepower of the
European Financial Stability Facility (EFSF) by authorizing it to buy
sovereign bonds, recapitalize banks and provide pre-emptive funding to
countries facing challenging situations in the markets.
“We should not be waiting any longer,” he said.
Draghi reiterated that downside risks to the Eurozone’s economic
outlook have increased, and that price pressures are likely to moderate
as activity slows.
“This is why the ECB decided to reduce its key interest rates by 25
basis points on November 3, acting in full compliance with its mandate
to maintain price stability in the medium term,” he added.
The ECB chief listed a number of principles that were “of the
essence” for monetary policy, including credibility on price stability.
“This is the major contribution we can make in support of
sustainable growth, employment creation and financial stability,” Draghi
said. “And we are making this contribution in full independence.”
Draghi also stressed the importance of national government policies
for restoring and preserving financial stability. “Solid public finances
and structural reforms – which lay the basis for competitiveness,
sustainable growth and job creation – are two of the essential
elements.”
— Frankfurt bureau: +49 69 720 142, email: frankfurt@marketnews.com —
[TOPICS: MT$$$$,M$$EC$,M$X$$$,M$$CR$,MGX$$$]
