Saturday October 25, 2014 Search
Weather | Athens
19o C
12o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Eurozone must reform, says eurogroup head in nod to Draghi

By Martin Santa

Eurozone governments must push ahead with structural reforms and should not rely on the European Central Bank to fix the economy, the chairman of the bloc's finance ministers said on Thursday.

Speaking as the ECB held a policy meeting in Frankfurt, Jeroen Dijsselbloem echoed comments last month by the bank's president Mario Draghi urging governments to focus more on reviving growth while continuing to reform their economies.

The bloc needed to design a growth-friendly fiscal environment, eurogroup head Dijsselbloem told the European Parliament's economic and monetary committee.

Eurozone finance ministers will meet in Milan on Sept. 12 to continue a debate how to fine-tune existing policies to fix public finances and support growth at the same time.

"Recent economic data confirm that the recovery in the eurozone remains very fragile and uneven,» Dijsselbloem said.

"I believe that recent developments underscore the need to push forwards the growth and reform agenda. Fundamental challenges faced by the euro zone are unchanged,» he added, noting the bloc was facing a threat of a long period of very low inflation.

The economic recovery in the 18 countries sharing the euro unexpectedly stalled in the second quarter while inflation fell to a five-year low in August.

Expectations for news of further stimulus from the ECB later on Thursday are high after Draghi pledged in a speech at last month's central bankers conference in Jackson Hole to use all available policy tools to avoid a deflationary spiral.

The ECB cut interest rates to a record low in June and has already promised steps to flood markets with cheap funds later this month to revive credit to the 9.6 trillion euro economy.

A Reuters poll pointed to no change in rates on Thursday, and analysts say the bank's room for manoeuvre for meaningful new policy initiatives is limited, with a possible announcement on a programme to buy asset-backed securities (ABS) viewed as most likely.

Dijsselbloem said the June policy package, including the TLTRO programme of cheap long-term loans, had not been given enough consideration in analyses.

"The results are yet to take place. Let's evaluate that as we go along,» he said.

Dijsselbloem also said politicians should not expect the ECB's monetary policy actions to do their work for them, and structural reforms were key.

"Depending very strongly on monetary policy has in itself a number of risks, which may not materialise in the short run, but that you have to deal with in the longer run,» said Dijsselbloem.

Europe is debating how to use existing fiscal rules - written down in the Stability and Growth Pact - and their flexibility to help the uneven recovery.

Shifting the tax burden from labour to boost domestic demand would be one of the options, Dijsselbloem suggested, adding there was space in number of European countries to boost public investment.

"Yes we should flexibility (within existing rules), but it's not a free ride. Some countries think that by simply using the word flexibility their problems will be and that cannot be the case,» he said. [Reuters]

ekathimerini.com , Thursday September 4, 2014 (15:35)  
TAIPED waits for green light from Eurostat
Trade deficit shrinks on big drop in imports
SMEs unable to claim subsidies
Taxes kept growing in second quarter
Athens, Nicosia satisfied by EU leaders´ stance toward Ankara
A reference in Friday’s European Council conclusions calling on Turkey to respect Cyprus’s sovereign rights left Athens and Nicosia content with the outcome of the European Union leaders’ su...
Suspended policeman chief suspect in cousin’s murder
A 27-year-old police officer who has been suspended from duty since 2013 for extortion, is being treated as the chief suspect in a murder committed in a suburb of Piraeus on Thursday. Police...
Inside News
BASKETBALL
A win is a win is a win for Olympiakos
A bad Olympiakos defeated a worse Laboral Kutxa 63-57 to make it two out of two in the Euroleague on Friday. In a game where the two teams had an overall field goal rate of about one in thre...
SOCCER
Panathinaikos snatches point at Eindhoven
Panathinaikos offered its fans a glimpse of its glorious past in European competitions snatching a draw at PSV Eindhoven, on an otherwise bad night for Greek soccer in the Europa League, as ...
Inside Sports
COMMENTARY
Tension for tension’s sake?
It is evident that Turkish President Recep Tayyip Erdogan feeds off tension. He would barely have achieved as much as he has – and prevailed – if he had not been so keen to confront a series...
EDITORIAL
Testing ground
The Regional Authority of Attica is a good testing ground for politicians who appear to thrive on accusations to prove whether they can actually solve major problems of a practical nature. T...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. A win is a win is a win for Olympiakos
2. TAIPED waits for green light from Eurostat
3. Trade deficit shrinks on big drop in imports
4. SMEs unable to claim subsidies
5. Taxes kept growing in second quarter
6. Thessaloniki Port expects 2014 to be record year
more news
Today
This Week
1. Woman killed in tram accident in Floisvo, south of Athens
2. Clocks to go back 1 hour on Sunday
3. Venizelos slams Turkey for 'flagrant violation of international law' off Cyprus
4. ECB vies for third time lucky in European stress tests
5. ECB bank assessment to show 6-billion-euro capital gap, Citi says
6. Cyprus GDP upgrade seen as boosting bailout exit plans
Today
This Week
1. The past, present and future of the Greek debt crisis
2. Greece’s closed society is central to its current malaise
3. Greece must stick to reforms, says Schaeuble
4. At least 11 banks to fail European stress tests, three in Greece, report says
5. Cyprus to block Turkey's EU talks after EEZ violation
6. Samaras’s crumbling Greek exit lacks backing from economists
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.