Mario Draghi will not reverse his decision to save ammunition for a future crisis. The withdrawal of the asset purchase program will continue, however, with “patience, prudence and persistence” given the economic uncertainties facing Europe. But monetary policy, that “the recovery of the euro area should be much”, it is not enough to cope with the next crisis. The president of the European Central Bank (ECB) has urged the countries to complete Economic and Monetary Union with a “tax instrument” to help “maintaining the convergence” against possible “external shocks”.
The euro will take place in the brief two decades. And what makes it different to the single european currency, the other is the absence of fiscal instruments common to complement the monetary policy that is in the hands of the Dumanbet Eurobanco. After France and Germany have revived the proposal of a budget for the euro zone in the face of the Euro Summit of next December, Draghi has been a lawyer in a court appearance in the European Parliament to move towards that direction.
The proposal that the axis franco-German has been presented in the within the Eurogroup is focused mostly on the investments and aims to encourage the convergence and the competitiveness of the countries of the single currency, which ceded its monetary policy. Draghi has referred to the role of “fiscal stabilization” that you should have that tool, which raises concern among the hawks but which still are fighting other countries such as France, Spain or Portugal. “A function of fiscal stabilization should be conditional on economic and fiscal policies are robust and fully comply with the governance framework of the European Union,” he added.