“It’s a very hard price to pay”

“The crisis has simply highlighted these disequilibria that already existed. It has highlighted that our banks were not properly capitalized. It has highlighted that the budgetary and debt positions of our governments were not sustainable and, finally, it has highlighted that our euro area governance ought to be vastly improved. So what is happening now is the direct outcome of the policy decisions that have been implemented in order to respond to these disequilibria that were unsustainable. I agree that it is a very hard price to pay, but it is unavoidable. And, I have always said that the only way to mitigate the impact of this budgetary consolidation, which is contractionary in the short term, is to undertake structural reforms that could increase competitiveness and exports, as well as create jobs and growth.”

Mario Draghi, ECB President

source : @faisalIslam

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: