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ECB report confirms fragile nature of any economic recovery - Carthy

7 April, 2016 - by Matt Carthy MEP

Sinn Féin MEP, Matt Carthy, has called on ECB President Mario Draghi to break with the platitudes and to get real about the impact that austerity policies have had on the Eurozone Economy.  Speaking in response to the publication of ECB Annual Report for 2015 Carthy said the Mario Draghi's statement confirmed the fragile nature of any economic recovery that has been seen and highlighted the need to reform the current Quantitative Easing programme.

Carthy who is a Member of the European Parliament's Committee on Economic & Monetary Affairs (ECON) said:

"In the 2015 Annual ECB Report Mario Draghi has confirmed that the future of the global economy remains uncertain and there are questions about Europe's ability to weather new shocks.  He effectively reiterated what Sinn Féin and many commentators have been saying for some time.

"This should not come across as any surprise.  Any objective observer can see that we are facing a global recession and that the European institutions are not equipped to deal with such a downturn as they have wed themselves to a disastrous austerity agenda.

"While the EU and Irish government have continued to push austerity it has been ordinary families in Ireland and other European continues who have paid the heaviest price while the affluence and influence of the wealthiest has grown.

"When referring to the ECB's Quantitative Easing (QE) Programme Mario Dragi stated that the package would boost economic output or GDP in the euro zone by around 1.5% up to 2018.  But he knows that this is fantasy as the experience of Quantitative Easing to date has been that it has been the banks and financial markets that have benefited most from the trillion euro programme. 

"There has been no attempt to use this money to boost the real economy or to benefit the people who need assistance most.  The money that has been created by the ECB has remained in the world of high finance and has succeeded only in boosting the price of assets such as shares, government bonds and commercial property.  It has not found its way into the kind of increased level of economic activity that people need to feel in their pockets.

"Any policy that fails to substantially grow the economy and create sustainable jobs is doomed to fail.  For our part Sinn Féin will continue, both in Europe and in Ireland, to call for a stimulus and investment package that will benefit families and communities in a meaningful manner". 


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