The President of the European Central Bank (ECB), Mario Draghi, stepped into the spotlight again on Monday, as he testified in front of European policymakers amid renewed concerns of deflation and questions regarding the effectiveness of his policies.
“The economic recovery in the euro areas is losing momentum,” Draghi told the Committee on Economic and Monetary Affairs. “The early information on economic conditions which we received over the summer has been somewhat weaker than expected.”
He also defended the take-up of the ECB’s latest cheap loan program, dubbed TLTRO or targeted longer-term refinancing operation. Last Thursday, the ECB doled out 82.6 billion euros ($106 billion) in loans to banks—an amount which was viewed as disappointingly low by markets.
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