European Central Bank President Mario Draghi has commenced his political visit this week by going to Belgium and Germany to urge EU governments to amplify the economy, encouraging Berlin to spend more money.
The ECB head is scheduled to address the European Parliament Monday and meet German legislators Wednesday. One of his main woes includes slow enactment of structural reforms.
From Draghi’s point of view, Germany is managing budget and current account surpluses which give the government flexibility to amplify demand right away. But for Chancellor Angela Merkel’s administration, government expenditure has surpassed consumer spending for over a year.
The ECB, which has been distressed about the pace of structural improvement, has created a task force focusing on economic reforms to account potential idawes. But Draghi reiterated nations with enough fiscal space should maximize it.
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