Millennium Post

Europe Growth still fragile: ECB chief

With economic growth remaining fragile, European countries cannot afford to relax their efforts towards implementing structural reforms, according to European Central Bank (ECB) President Mario Draghi.

Many countries in Europe are still grappling with economic woes making the region’s recovery uneven. Draghi, the President of European Central Bank, said that Europe is on the road to recovery but governments must remain committed to structural reforms.

‘The recovery is gradually taking place but the risks are to the downside... unemployment has stabilised but remains very high,’ he told the World Economic Forum (WEF) annual meet. Noting that growth remains fragile and uneven, he said the recovery which started with exports is now moving to consumption.

Some economic data, such as confidence and industrial production, have been occasionally good and occasionally not so good, creating a situation similar to that in the USA a year-and-a-half ago.

Appreciating Greece, Portugal, Spain and Italy for implementing structural reforms, Draghi said they cannot relax their efforts. Fiscal consolidation must not be unravelled, he added. About the European banking system, he said the situation is ‘dramatically better’ that what it was a year ago.

The upcoming stress tests would further improve confidence in the banking system by increasing transparency, he said.
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