European Central Bank head Mario Draghi defended the bank’s new stimulus programs as he warned that a tepid economic recovery in the eurozone “is losing momentum.”
Draghi told members of the European parliament that recent economic indicators have given “no indication” of an upturn since August. The 18 countries that use the euro saw no economic growth at all in the second quarter.
Draghi said growth was threatened by geopolitical disturbances and by failure of euro member governments to reform their economies and make them more efficient.
He defended the bank’s most recent stimulus program, an offer of cheap, long-term loans to banks. Banks took only 82.6 billion euros at the first offering Sept. 18 , less than many market analysts expected. Draghi said the takeup was within the bank’s expectations.