Mario Draghi calls for a "growth pact" European
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Mario Draghi calls for a "growth pact" European

Rome : Italy | Apr 25, 2012 at 2:05 PM PDT
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ECB President Says No to Stepping Up Bond Buying

President of the European Central Bank (ECB), Mario Draghi , called Wednesday, April 25 "a growth pact" European, and called for structural reform without moderating its demands for fiscal discipline in front of MEPs.

"Currently, what I have most in mind, this is (the need) to have a growth pact, "he insisted. While "structural reforms face broad interests" and "hurt", they should be prosecuted for the future .

If he did not elaborate what he meant by the term "growth", a spokesman for the ECB told AFP that it was such reforms as the market flexibilisation work to improve the competitiveness of states and not a stimulus by government spending - which he strongly opposes.

Mr. Draghi, who is also opposed to more direct support of the ECB to growth, believes that the measures already taken in some countries "must be complemented by structural reforms to growth to facilitate entrepreneurship, the establishment new businesses and job creation. Here, governments should be more ambitious, "he said.

MONITORING

For Mr. Draghi, economic policies such as budget should also be "subject to mutual surveillance and corrected if necessary in the collective interest of the euro area". Finally, he said states should improve their cooperation in "research, development, education and infrastructure."

Mr. Draghi has nevertheless justified the European strategy of austerity, conceding that it could plunge the short-term country into recession, but should bear fruit later. "We're halfway there" and must continue, he pleaded. "The values ​​of social integration and solidarity always belong to my culture, (and) I'm not at all against the model social Europe ", he added." But social model must be sustainable ", and can not be based on the debt, he said.

ADVOCACY WELCOMES

The ECB President made ​​this statement while the French socialist Francois Hollande - topped Sunday's first round of presidential elections in France - pledged to renegotiate if elected the European stability pact, by adding a component to support growth . The candidate has also welcomed on Wednesday the position of Mr. Draghi - proof he said that his " ideas cheminent ".

For its part, German Chancellor Angela Merkel has also ruled Wednesday that the eurozone growth needed to get out of the crisis, through long-term initiatives. "We need growth, growth initiatives in the form of perennial , not just economic programs - which still dig the debt - but growth as Mario Draghi said today, in the form of structural reforms, "Merkel said at a conference on raw materials.

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The European Central Bank (ECB) President Mario Draghi attends the monthly news conference in Frankfurt
The European Central Bank (ECB) President Mario Draghi attends the monthly news conference in Frankfurt
Nazish Fatima is based in Rāwalpindi, Punjab, Pakistan, and is a Reporter for Allvoices.
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