BRUSSELS – Greece has made significant progress in fiscal consolidation and structural reforms, European Central Bank’s President Mario Draghi said on Sept. 22nd, addressing the European Parliament’s Economic and Monetary Affairs Committee.
Responding to a question by New Democracy Eurodeputy George Kyrtsos for a comment on the Greek government’s position that the country did not need a new support package and that it was ready to follow the footsteps of Ireland and Portugal, Draghi said that as in all other countries and in Greece “there is no bargain”.
“We are making our policy based on the mandate we have and national governments make their own,” the European central banker said.
Draghi noted that monetary policy was no subsidy for structural reforms and that their implementation depended on national governments.
He acknowledged the significant progress made by Greece in promoting fiscal consolidation and structural reforms and stressed that this progress was recognized also by markets which offered capital to Greece.
He noted that markets were based on the precondition that Greece will continue a reform effort and everything included in the current program. Draghi said that all countries must take advantage of this particular period to continued their effort drive.
Commenting on the situation in the Eurozone, ECB’s president expressed his belief that “economic recovery was losing its momentum”, adding that economic prospects were weaker compared with estimates made in the summer. Draghi said that high unemployment, geopolitical tensions and a shortfall in reforms were limiting economic recovery in the Eurozone.
“The economic crisis will end only if structural reforms are implemented,” Draghi said, adding that the risk of non-implementation of reforms could burden investment climate in the area.
Commenting on the results of a recent TLTRO funding program, the ECB’s President said that its announcement has had only a positive impact on financial markets.