EU, Draghi: «First the market reform, then the frequent debt» | EUROtoday

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«If the EU issued debt collectively, it might create extra fiscal area that could possibly be used to restrict intervals of below-potential progress. But we can’t start to comply with this path if adjustments within the construction of the markets usually are not already underway which might improve potential progress charges within the medium time period.” Mario Draghi said this at the Cepr, Center for Economic Policy Research in Paris. “Without a typical debt we can even must shift our political motion from altering the orientation of fiscal coverage to bettering its composition – growing public investments – and coordination between member states.”

«Necessary market reforms»

Mario Draghi thus returns to ask the European Union to advance on the “European single market and the capital market”, reforms “that are elementary, since they help the essential mechanisms that drive productiveness progress”. In his speech at the CEPR in Paris, the former prime minister and president of the ECB underlines how «market reforms are necessary for macroeconomic policies to have full effect, and fully effective macroeconomic policies are necessary for market reforms to produce maximum growth of productivity”.

«Europe should struggle to protect its values»

«We all need the society that Europe promised us, a society during which we are able to keep our values ​​no matter how the world round us adjustments. But now we have no immutable proper for our society to all the time stay as we want. We should struggle to protect it”, continued Draghi. According to the former prime minister «it would be reassuring to believe that these problems are not as serious as they seem and that, being a rich continent, Europe can enter a phase of managed and comfortable decline. But in reality there is nothing comfortable about it.”