ECB's Draghi: Improvements in the eurozone over the last year and a half have been dramatic; risks have decreased in core and peripheral nations - Davos comments
- Target2 balances have fallen 40%, risks have decreased across the board for core and peripheral eurozone nations, stock markets have risen.
- Hard data is not as uniformly positive as survey data, but loose monetary policy is finally passing through to the economy.
- Recovery is still weak, uneven and fragile, unemployment has stabilized but remains a big concern
- Reiterates risks to the economic outlook are to the downside.
- Markets vastly underestimated the amount of committment European leaders had to supporting the EUR and moving forward with banking union.
- All of the nations of the eurozone need to continue reforms. Many peripheral nations have made significant reform efforts but some need to step up reform efforts.
- Cannot move backwards on fiscal consolidation, but fiscal consolidation should be made more growth friendly.
- Hard data is not as uniformly positive as survey data, but loose monetary policy is finally passing through to the economy.
- Recovery is still weak, uneven and fragile, unemployment has stabilized but remains a big concern
- Reiterates risks to the economic outlook are to the downside.
- Markets vastly underestimated the amount of committment European leaders had to supporting the EUR and moving forward with banking union.
- All of the nations of the eurozone need to continue reforms. Many peripheral nations have made significant reform efforts but some need to step up reform efforts.
- Cannot move backwards on fiscal consolidation, but fiscal consolidation should be made more growth friendly.