Thursday, December 15, 2011

Draghi Says Short-Term Contraction in Euro Area Unavoidable Amid Austerity

European Central Bank President Mario Draghi said the euro area may not be able to escape a recession due to governments’ austerity measures.

“The unavoidable short-term contraction may be mitigated by the return of confidence,” Draghi said during a speech in Berlin today. “But in the medium term, sustainable growth can be achieved only by undertaking deep structural reforms that have been procrastinated for too long.”