from Dirk Ehnts, Econoblog101
Mario Draghi had an interesting ending in his ECB press statement on last Friday (not my highlighting):
In particular, actions to improve the business environment, including the provision of an adequate public infrastructure, are vital to increase productive investment, boost job creation and raise productivity.
The swift and effective implementation of structural reforms, in an environment of accommodative monetary policy, will not only lead to higher sustainable economic growth in the euro area but will also raise expectations of permanently higher incomes and accelerate the beneficial effects of reforms, thereby making the euro area more resilient to global shocks. Fiscal policies should support the economic recovery, while remaining in compliance with the fiscal rules of the European Union. Full and consistent implementation of the Stability and Growth Pact is crucial to maintain confidence in the fiscal framework. At the same time, all countries should strive for a more growth-friendly composition of fiscal policies.
I guess that this is as far as a central bank president, who has no power over fiscal policy, can go. The German press, if I am not mistaken, have ignored the plea for expansionary fiscal policy. At least the article in SPON did not mention it and I do not recall any other newspaper mentioning it last week. This is why I chose the title:
Draghi: “Fiscal policies should support the economic recovery”
This is news in Germany.
