ECB WARNING: EU on BRINK of being ripped apart as Greece, Spain, Portugal inequality grows
INEQUALITY is spreading throughout the European Union in a worrying trend which is destabilising the bloc, it has been warned.
By ZOIE O’BRIEN
Express.co.uk
Tue, Jun 27, 2017
European Central Bank President Mario Draghi urged Brussels to rapidly work on failings such as the widening gap between rich and poor.
According to Mr Draghi income inequality has grown among eurozone countries since the financial crisis.
The divide created has caused huge tensions between those in the 19-member currency bloc.
Just a few countries have been able to shrink income inequality buck the trend, while elsewhere, it has risen.
The highest levels of income inequality have been registered in Greece, Spain and Portugal, as well as France and Italy.
Mr Draghi says rising levels of inequality must be tackled with education, innovation and investment in human capital.
Draghi said: “We have to fight against inequality.
“Is this a seriously destabilising factor that we should cope with?”
The ECB leader said Governments around the bloc must enact fundamental reforms, stating the bank has the ability to prop up growth for a certain time period.
In that time frame Draghi wants jobs to be created, coupled with increased investment in education, skills development and innovation.
Policies in single member states will also help to bridge the gap, he claimed, asking individual leaders to propose better income and wealth redistribution policies.
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