The president of the European Central Bank on Monday put pressure on governments to push ahead with plans for a closer European integration to address the crisis’ core problems.
Speaking to university students in Amsterdam, Mario Draghi said that the euro zone’s economic problems still loomed large and that calls for more action were understandable. But he also stressed the ECB’s operational limits.
“Let me be clear: undertaking structural reforms, budget consolidation and restoring bank balance sheet health is neither the responsibility nor the mandate of monetary policy,” he said in the speech text.
The ECB could not substitute for actions that other actors, including the private sector, had to take, the Italian said.
Although there was a decrease in fragmentation on the funding side, the ECB’s very accommodative monetary policy was only partly passed on to the financing conditions faced by firms and households in some euro area countries, Draghi said.
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