Needs To Stick To Reform Path To Secure Growth: ECB's
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[May 31, 2014]
FRANKFURT (Reuters) -
European policymakers should not give up on efforts to
make their economies more efficient and stick to budget
rules, despite a strong protest vote in European
Parliament elections, the ECB's Yves Mersch said on
With far-right, anti-EU parties sweeping to unprecedented victories
in France, Britain and Denmark and populists gaining ground
elsewhere, political leaders face tough questions about the future
direction of European integration.
Mersch, a member of the European Central Bank's Executive Board,
said it was essential to move ahead with structural reforms now, to
finish what was started in 1999 and make the euro zone work.
Otherwise, he said, "on our current reform-resistant course, I see a
distant but distinct probability that (economic) growth in the euro
area begins a secular downward drift". Most estimates found that
potential euro zone growth had diminished during the crisis.
"This is why moving ahead with structural reform is essential,"
Mersch said in the text of a speech.
"We have done much to stabilize the euro area with banking union and
other reforms; but now we need to find ways to make the euro area
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"Voters in Europe have overall given policymakers a mandate to do
this; we have a pro-European majority in Parliament. If we do not
seize this mandate, however, they may not provide another one," said
(Reporting by Eva Taylor; Editing by Ruth Pitchford)
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