Frustrated Draghi calls for faster labour reform

Tim Wallace
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GOVERNMENTS must use the current relative “calm” in financial markets to push ahead with vital reforms, European Central Bank (ECB) boss Mario Draghi insisted yesterday, as he left interest rates at one per cent.

The ECB pumped over €1 trillion (£827bn) into banks in two long term refinancing operations (LTROs) in December and February, which “avoided a major credit crunch, easing market pressures”, he said.

The resulting period of calm provides “a window of opportunity for governments to undertake fiscal consolidation and fiscal reforms,” he added.

Draghi encouraged governments, including those in Spain and Italy, to push ahead with reforms in spite of recent protests, arguing that only increased market flexibility can create a stable platform for long-term economic growth and start to bring down very high levels of unemployment, particularly among the young.