European Central Bank (ECB)
President Mario Draghi told the European Parliament on Monday
the eurozone would have been in deflation if the ECB hadn't
taken measures such as its massive bond-buying or quantitative
easing program.
"If we hadn't taken action the eurozone would have been in
discernible deflation, and growth would be 1% lower," Draghi
said in answer to questions from MEPs.
As well, Draghi said "countries should benefit from
growth-friendly budget policies (to be achieved via) more
efficient public sectors and by moving towards a more
growth-oriented taxation system".
"Budget policies should contribute to growth," Draghi said.
"At the same time, they should fully respect Stability Pact
requisites," he added.
"This is important to maintaining confidence in the
framework of EU rules," the EU central banker said.
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