Eurozone on the brink of yet ANOTHER explosive financial crisis, warns banking chief
LEADERS of the eurozone must reform their economies to save the bloc from another explosive crisis, the chief of the European Central Bank (ECB) said today.
By LANA CLEMENTS
Express.co.uk
Thu, Jun 9, 2016
Mario Draghi urged euro leaders to make changes to labour markets, as the bloc’s economy continues to struggle with low growth and high unemployment.
The chief said ageing populations are a huge problem for the jobs market that will start to hack away at the eurozone’s potential in the coming years.
Speaking in Brussels today, Mr Draghi said: “We cannot avoid the fact that, over time, the inherent speed limits resulting from the euro area’s unfavourable demographics will start to bite.”
He said governments must now take steps to improve productivity of workers and increase the amount of people in employment.
It comes as France faces huge opposition and protest in making labour reforms that would make it easier for employers to hire and fire workers.
Mr Draghi warned politicians are relying too heavily on monetary policy to solve the financial woes of the eurozone.
The ECB yesterday started its latest effort to kickstart eurozone growth yesterday.
The central bank is now buying top companies’ debt – corporate bonds – to inject billions of pounds worth of more money into the economy.
The ECB is buying investment grade bonds from telecoms, insurance and utilities sectors, which in sends the bond yields lower – or the amount the company has to pay on its debt.
The bank hopes this will step up investment in the economy.
But many think the plan is riddled with problems.
The Rest…HERE
