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27 Nov 2014
Draghi: Strong case for sovereignty over relevant economic decisions to be exercised jointly
FXStreet (London) - Speaking at the University of Helsinki, European Central Bank president Mario Draghi has said that Eurozone countries need to invest more in other mechanisms to share the cost of shocks.
Speaking at the event organised by the Finnish central bank, Draghi said that during the crisis, countries with more flexible economies on the whole adjusted faster with a lower employment cost adding that there is a “strong case for sovereignty over relevant economic policies to be exercised jointly. That means, above all, structural reforms.”
“If we do not want a transfer union, then we have to be consistent and establish an environment where other mechanisms can work.
The comments from the ECB president come ahead of the ECB’s monetary policy decision on 4 December.
Speaking at the event organised by the Finnish central bank, Draghi said that during the crisis, countries with more flexible economies on the whole adjusted faster with a lower employment cost adding that there is a “strong case for sovereignty over relevant economic policies to be exercised jointly. That means, above all, structural reforms.”
“If we do not want a transfer union, then we have to be consistent and establish an environment where other mechanisms can work.
The comments from the ECB president come ahead of the ECB’s monetary policy decision on 4 December.