Quotes: US MENA   Enter Symbol: NewsLetter: Search: advanced

Draghi says recovery road is still long, euro zone governments have no alternative to spending cuts  Join our daily free Newsletter

MENAFN - ecPulse - 09/10/2012

No. of Ratings : 0
Add to Mixx!


 


ECB President Mario Draghi in testimony to the European Parliament on Tuesday said the ECBs new bond-buying plan is ready to act to prevent any occurrence of "destructive scenarios" in the 17-country region.   

He clarified that "the ECB will conduct OMTs if and as long as countries comply with strict and effective conditions attached to an appropriate programme."

Regarding the status of the economy, he said there are some signs of improvement that appeared over the past couple of months yet "the road ahead is still long and its uphill," showing that the main problem is that the crisis had yielded in a status of lack of confidence.

The euro area is still suffering from remarkable weakness and will only find recovery in a gradual manner as euro area economies are likely to continue with their austerity measures to bring back deficit to targeted levels, yet he referred that there is not alternative for cutting spending.

Draghi revealed that the ECB expects weak economic activity in the near term whereas inflation risks remaining broadly balanced.

In addition, he highlighted that the region is prone to high risk stemming from financial instability.

He added that banks outside the euro area should have the same conditions for taking part in an EU-wide banking supervisor.

Today, the IMF lowered growth forecast for the euro area to 0.4 percent contraction this year, which is 0.1 percentage point lower than Julys forecasts, while grow 0.2 percent next year, revised down from prior estimates of 0.7 percent.

Both IMF forecasts and Draghi comments pushed the euro lower versus the dollar to hit a low of 1.2906, compared with the days opening of 1.2967.  

 

 


 






  MENA News Headlines


 
Click to Apply






Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country
Marketwatch News
UPI News
Comtex News

IPO News
Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

US Markets Details

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Investment Game
Economic Calendar
Financial Glossary

My MENAFN
Portfolio Tracker

Voting

Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2000 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help