Draghi: Monetary expansion is far from over

At Stanley Fischer's farewell conference in Jerusalem, ECB head Mario Draghi said the European financial crisis is easing slightly.

"The European economy is in the throes of a slowdown," President of the European Central Bank (ECB) Mario Draghi said today at the farewell conference in Jerusalem for Bank of Israel Governor Prof. Stanley Fischer. " Draghi stressed that the ECB is "far" from halting its policy of monetary expansion due to the European financial crisis.

He added, "Output is still falling and unemployment is surging to insufferable levels. The most recent data indicate a slight improvement. The cost of work rose 4% although in Spain it continues to fall. Exports have risen. These figures are slightly encouraging and shown a renewed balance."

"Our policies will continue as required but we are very far from the end of these policies. We are ready to work at every moment. At the same time since last summer we see a retreat from the financial stagnation gripping Europe."

Draghi added, "There is a need for continuing reform in Europe, mainly a reform at the level of national structures. One of them is in banking unification. Some of the current problems stem from the poor situation of some of the commercial banks in Europe. These banks need to separate themselves from national policies."

Published by Globes [online], Israel business news - www.globes-online.com - on June 18, 2013

© Copyright of Globes Publisher Itonut (1983) Ltd. 2013

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