ECB in a Difficult Position

Investors in euro-denominated assets can get very useful insights from important points that European Central Bank (ECB) President Mario Draghi made last week while addressing several committees of the Italian Parliament.

At the outset, Draghi pointed out that the main purpose of the ECB’s asset purchase program (“quantitative easing”) was to create a more favorable environment for structural reforms.

These reforms are an absolutely essential part of freeing up market mechanisms in Europe’s rigid economies and bloated welfare systems. They are supposed to create conditions necessary for steady and balanced economic growth.


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