Abroad

3/23/2018

ECB President Draghi, "European Economy Growing on a Permanent Speed Based on Consumption"

European Central Bank (ECB) President Draghi has warned EU leaders on loosening protectionism and financial regulations and against increasing the expenditures

Having briefed the leaders at European Union (EU) Leaders Summit, European Central Bank President Mario Draghi has noted growth continued in Europe economy but warned the leaders against some risks.

Draghi has noted that European Economy growing on a permanent speed based on consumption, investments also including housing, increased unprecedented ratio never seen since the crisis of ten years ago. Reporting decreasing private sector debt and improved capital ratios of banks are all added into this positive Picture, Draghi has underlined that there existed 4 medium term risks, mainly from out of Europe.

Draghi has listed the subject risks as, first protectionism  trends in the trade, second the loosening efforts of financial regulations. Draghi has reminded that loosening of financial regulations triggered the crisis in the past. Noting third risk as repricing the assets, Draghi has given the sharp sales of US stocks early this year as an example of this. Fourth risk was noted to be pro-conjuncture financial policies, said Draghi and underlined tax reform and spending plans in the USA. Draghi has reported that many EU member countries plan to loosen the tightening and increase the expenditures although their economies started to grow.

Short term growth in Euro Zone may exceed expectations

Meanwhile, in the economic bulletin released by ECB most recently, it is noted that in Euro Zone a strong growth in the economy experienced and short term growth may exceed previous expectations. ECB further noted that employment market continue to show strong Dynamics, private consumption increasing, export growing, recovery prevailed on bot construction and non-construction investments and underlined these are all the indication of a strong growth in the forthcoming period.