It’s interesting to note that in the summary of yesterday press conference Mario Draghi not only explained the reasons for lowering the key ECB rates by one quarter (slow growth, basically), but explicitely reiterated the ECB policy agenda: fiscal consolidation, structural reforms, particular in labor and product markets, competition in services, liberalizations in closed professions and privatization of (public) services sevices. I wonder who he was talking to..
…Turning to
fiscal policies, all euro area governments need to show
their inflexible determination to fully honour their own individual
sovereign signature as a key element in ensuring financial stability in
the euro area as a whole.
It is crucial that fiscal consolidation and
structural reforms go hand in hand to strengthen
confidence, growth prospects and job creation. The Governing Council
therefore calls upon all euro area governments to accelerate, urgently,
the implementation of substantial and comprehensive structural reforms. … In this respect, labour market reforms are
essential and should focus on measures to remove rigidities and to
enhance wage flexibility.. More generally, in these
demanding times, moderation is of the essence in terms of both profit
margins and wages. These measures should be accompanied by structural
reforms that increase competition in product markets, particularly in
services – including the liberalisation of closed professions – and,
where appropriate, the privatisation of services currently provided by
the public sector…