ECB governing council meeting: Reaction from Sharon Bowles MEP

Sharon Bowles MEP, Chair of the European Parliament's Economic and Monetary Affairs Committee, issued the following statement after the governing council meeting of the ECB. Welcoming the decisions taken as a step in the direction of saving the Euro, Ms Bowles also noted that the reforms must be continued because the ECB's actions alone are not enough and do not come without cost.

Sharon Bowles MEP said:

"Mario Draghi has clarified the action that he will take to save the Euro. As expected, the ECB will buy short-term bonds provided that there is accompanying pressure on politicians to maintain structural changes. I believe it is essential that such conditions are applied, not just for discipline but also because the actions taken by the ECB are not without cost.

"Opposition to the ECB action is usually made on the ground of monetary financing or inflation. In fact, one of the costs is not so much inflation of consumer prices but long-term lowering of returns to most pensioners and savers, as well as increasing the cost of pension contributions for the working age population. This can, in turn, also negatively affect business competitiveness. These sectors of society are of course already affected as a result of the cycle of stimulus, lowering of interest rates, and quantitative easing type measures that have been taken in the US and Europe.

"I am sure markets will celebrate at some temporary relief, but it is essential to keep up all the measures for stability and reform that are at various stages of implementation and planning, including the banking union proposals."

ENDS

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