Mario Draghi resigns as head of the European Central Bank now holds this post, Christine Lagarde. Today, the key policy Lagarde wished success in his new position. In addition, they expressed their gratitude to Draghi for his work in difficult times.
Mario Draghi said that currently control policy is very weak and in need of financial assistance. Urgent measures - the creation of institutions that will help stabilize the economy, as monetary policy is weakened.
The ECB does not have sufficient policies and had no choice how to use untested tools, so as to support the growth. Draghi stressed the need to integrate Europe.
Draghi spoke to key policy makers, which also were German Chancellor Angela Merkel and French President Emmanuel Macron. He said that the European Union needs a common budget, as it will help stabilize the currency union.
Back in early October, the unit finance ministers discussed the possibility of the formation of the overall budget for the euro area, but it did not meet the original intent of the officials.
To date, low interest rates limit the actions of the central bank, so now you should pay attention to fiscal policy.
Earlier, Germany was very categorical in the general budget or risk-sharing issue, because I believe that German taxpayers may separately be responsible for the irresponsibility of other countries.
Mario Draghi served as head of the ECB for eight years and did everything possible to save the power of the power of the European currency and he did it. The euro zone is not only broke, but also has become stronger than during the financial crisis.
European leaders said that Draghi did everything in order to support the euro in volatile times. It was he who successfully fought the deflationary sentiment and weak growth in the euro area using a low and even negative interest rates and quantitative easing.
Last week, on Thursday, Draghi held its last meeting, which traditionally was criticized, but he did not pay it much attention. He only said that it is necessary to introduce new stimulus measures in the euro area, further reducing the interest rate, which in turn will provide cheap loans to banks.
In addition, the Central Bank resumed purchases of corporate and government bonds in the amount of 22.2 billion dollars in the month, which was also accompanied by criticism.
Many experts wonder what policy will adhere to Lagarde? Will the path Draghi or find an alternative solution. The main task it faces to overcome differences between the ECB members, and to do so, to become parties to engage in dialogue.
From what is known at the current time is the fact that Lagarde is going to not only rely on monetary policy, and plans to appeal to the authorities, so they took advantage of the freedom of action to stimulate the economy of the eurozone due to higher spending on key infrastructure projects.
Note that the new head of the ECB does not have economic education, so a lot of what it will rely on the knowledge of their colleagues. But at the same time, its many years of experience at leading positions in communication, actions in the head of the IMF after the financial crisis cause approval.