ECB Member Urges Governments to Reform Economies

The euro zone risks a loss of economic momentum and a delayed recovery unless governments match the European Central Bank’s monetary stimulus with fiscal and structural policies to support growth, ECB policymaker Benoit Coeure said on Tuesday.

Coeure, a member of the ECB’s six-member Executive Board that forms the core of the policymaking Governing Council, urged governments to press ahead quickly with the reforms to shape up their economies.

“Unless an adequate mix of monetary, fiscal and structural policies is in place to create confidence and sustain private consumption and investment, we once again run the risk of a self-fulfilling loss of momentum and a delayed recovery,” he said.

“From our side, we are fully committed to play our part in this policy mix, which is to fulfill our mandate and bring inflation back toward 2 percent.”

The experience of the euro zone crisis and adjustments made in Baltic states had shown that “on the whole, front-loaded reforms yield better results than a more gradual approach,” Coeure added in a speech in Nicosia.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza