eurozone recovery is there
Last Updated : GMT 09:40:38
Themuslimchronicle, themuslimchronicle
Themuslimchronicle, themuslimchronicle
Last Updated : GMT 09:40:38
Themuslimchronicle, themuslimchronicle

Board member Benoit Coeure:

Eurozone recovery 'is there'

Themuslimchronicle, themuslimchronicle

Themuslimchronicle, themuslimchronicleEurozone recovery 'is there'

ECB board member Benoit Coeure
Frankfurt - Arab Today

Economic recovery has arrived in the 19 countries that share the euro, but it is up to governments to ensure it endures, European Central Bank executive board member Benoit Coeure said Thursday.

"The eurozone recovery is clearly there. Growth is coming back, all business and household confidence indicators are pointing upwards. And the good news is that this recovery is rooted in domestic demand and in consumer spending in particular," Coeure told AFP in an interview.

For the time being, however, the recovery is still "insufficient and somewhat unequally spread from country to country," he cautioned.

"Our concern is that the current upturn is merely a cyclical one, that it's merely a flash in the pan."

To help get the economy back on its feet, the ECB launched a massive one-trillion-euro bond purchase programme, known as quantitative easing or QE, at the beginning of March, under which it aims to buy 60 billion euros ($64 billion) of bonds per month until September 2016, or more than 1.0 trillion euros in total.

Coupled with the weaker euro and falling energy prices, the ECB scheme "is injecting a lot of fuel" into the economy, Coeure said.

But these factors "are only transitory," he added, urging governments to turn up the pace of economic reform.

- QE on track -
"It's extremely important to 'convert the try', so that growth can become long term," the central banker said, using a term from the game of rugby.

"This can be achieved via labour market reforms and by more generally creating a business environment that is more conducive to investment," he argued.

"The real test will be a pick-up in investment in Europe this year," he added.

To achieve this, "favourable financing conditions are needed. That's what we're doing, that's the role of the ECB. But people must also have plans and the desire to do business. That's the task of the governments."

Coeure insisted there was no question of the ECB rolling back its QE programme for the time being.

"That's a discussion we might have later down the line," he conceded.

At this stage, however, "we haven't encountered any technical problem in the implementation of the programme. It's going very smoothly in all eurozone countries and market reaction has been exactly as we hoped," he said.

QE "will have an accelerating effect on recovery, we're certain," Coeure said, adding that fears of a scarcity of bonds for the ECB to buy had proven unfounded.

"We don't see any difficulty in buying all of the assets that we had planned to buy as part of this programme," he insisted.

- Grexit 'no working hypothesis' -

Asked about Greece's future in the euro area, Coeure said "there is still a lot of work to do," even if a possible "Grexit" -- or Greek exit from the single currency -- was "not a working hypothesis" for the central bank.

"A very large majority of the Greek population wants to remain in the eurozone. It's up to the Greek government to take the necessary action to make that possible, which is to say, reach agreement with the euro area," Coeure said.

The Greek government under Prime Minister Alexis Tsipras is obliged to draw up a list of economic reforms in return for a final 7.2-billion-euro tranche of aid under its bailout programme. Athens needs the money to be able to meet its debt repayments. But talks with creditors, the EU, the ECB and the International Monetary Fund, are proving sticky.

"Discussions have been difficult and slow," Coeure said.

"They weren't made any simpler by the way in which they were organised. That made them very laborious," he continued.

"There remains sizeable disagreement between the Greek authorities and the three institutions -- the Commission, the ECB and the IMF -- on a number of issues that are key to the Greek economy, such as labour market reforms, privatisations, pension reforms... or the reform of the product and services market," Coeure said.

"The process is on track and we're having good discussions. But there is an element of concern that the talks are proceeding slowly and that Greece has less and less time to find a solution," he said.
Source: AFP

themuslimchronicle
themuslimchronicle

GMT 08:11 2018 Wednesday ,17 January

BlackRock chief calls on CEOs

GMT 08:51 2018 Wednesday ,03 January

Banks 'reticent' to work with Sudan

GMT 08:36 2017 Sunday ,31 December

US tax reform to cut earnings by $5 bn

GMT 18:42 2017 Thursday ,28 December

Al-Sukait Tackles Investors’ Contribution

GMT 18:34 2017 Wednesday ,27 December

Shaath reveals opening date of Metro third line

GMT 09:52 2017 Tuesday ,12 December

Senate tax plan would boost revenue $1.8 tn

GMT 08:42 2017 Friday ,08 December

Post-Brexit London 'won't fall apart'

GMT 10:04 2017 Monday ,27 November

Brexit without EU trade deal 'not end of world'
Themuslimchronicle, themuslimchronicle
Themuslimchronicle, themuslimchronicle

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

eurozone recovery is there eurozone recovery is there

 



Themuslimchronicle, themuslimchronicle
Themuslimchronicle, themuslimchronicle
Themuslimchronicle, themuslimchronicle

GMT 08:32 2011 Monday ,25 July

Sabri accuses Yusri in Souad Hosni’s murder

GMT 12:07 2014 Monday ,03 February

Home design ideas

GMT 11:20 2017 Thursday ,02 March

Mexico central bank cuts growth outlook over Trump

GMT 08:31 2017 Tuesday ,28 November

Bangladesh upholds death sentence for 139 soldiers

GMT 14:33 2017 Thursday ,20 April

US defense secretary vows support for Egypt's Sisi

GMT 16:12 2017 Wednesday ,20 December

Myanmar bars UN rights investigator just before visit

GMT 08:21 2017 Wednesday ,30 August

United Technologies near deal to buy Rockwell Collins

GMT 18:27 2017 Friday ,21 April

ARCO condemns targeting of ERC convoy in Somalia
Themuslimchronicle, themuslimchronicle
Themuslimchronicle, themuslimchronicle
 
 Themuslimchronicle Facebook,themuslimchronicle facebook  Themuslimchronicle Twitter,themuslimchronicle twitter Themuslimchronicle Rss,themuslimchronicle rss  Themuslimchronicle Youtube,themuslimchronicle youtube  Themuslimchronicle Youtube,themuslimchronicle youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2023 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2023 ©

muslimchronicle muslimchronicle muslimchronicle muslimchronicle
themuslimchronicle themuslimchronicle themuslimchronicle
themuslimchronicle
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
themuslimchronicle, themuslimchronicle, themuslimchronicle