European Central Bank (ECB) president Mario Draghi has announced that the ECB has taken decisions on ways to enhance credit and that ECB refinancing at full allotment will continue into mid-2014.
Draghi said that a lack of funding can not be an excuse for not lending. It was noted that Eurozone government deficits had fallen on average from 4.2 per cent in 2011 to 3.7 per cent in 2012.
On austerity versus growth, Draghi said that many countries had successfully proceeded with fiscal consolidation and are reaping rewards from that. Issues have arisen where countries have raised taxes quickly where taxation was already high.