Eurozone: the ECB is more optimistic – The Express

The European Central Bank (ECB) was more optimistic Thursday on the economic outlook in the euro zone in 2016. The ECB expects a 1.6% GDP growth and inflation of 0.2% in the block monetary. More optimistic forecast than in March or respectively 1.4% and 0.1% – in favor of a strong domestic demand and a small rise in oil prices.

STORIES & gt; & gt; Draghi calls on European states to the rescue

The risks, however, are still numerous. British referendum on maintaining the UK in the European Union on 23 June, including uncertainty. But the ECB itself “is ready for any eventuality” on this subject, according to its president Mario Draghi.

“Structural reforms are needed in all countries of the euro area”

The institution maintains a very generous monetary policy, and may even expand further its action in case of further deterioration in the outlook, insisted the institution’s president.

President of the European Central Bank (ECB) Mario Draghi in Frankfurt, Germany, March 10, 2016

afp.com/DANIEL ROLAND

on the price front, the custodians of the euro are in check for months: ballasted by the fall in prices oil prices, consumer prices declined further in May in the euro area, 0.1% year on year. for the ECB, the ideal inflation “close to but below 2%”. to correct the situation, it has recently expanded its support to the economy by inflating its extensive program of debt purchases and lowering its interest rates again. the central key rate is at zero since March.

the measures already implemented “made a big difference, they were very effective”, welcomed Draghi. the President of the ECB considers however that “structural reforms are needed in all countries of the euro zone.” at this stage, “attention should be paid to actions to increase productivity and improve the business environment,” he said.

Greece: ECB expects the implementation by Athens of several measures

Regarding Greece, it will take the implementation by Athens of several measures such provisions on the privatization of ADIME electricity distributor, for the ECB to reopen the tap funding Greek banks the same conditions as their counterparts in the euro area, further explained Mario Draghi.

The restoration of a favorable regime for Greek banks to Greek allow institutions to refinance free of charge from the central bank in exchange for Greek government debt. Considered “doubtful” loans, bonds issued by the Greek state are currently inadmissible as collateral financing.

“When the prior actions have been implemented, the Governing Council will make a decision that will lead to the restoration” of this exceptional regime, suspended in February 2015, said Mario Draghi. “Athens intends to address the issue of past prior actions pending (…) tonight” with a vote in Parliament, according to a Greek government source. But the Governing Council will again consider the case on July 21, the date of its next monetary policy meeting.