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Germany: ECB's Draghi pushes German style structural reforms01:54

Germany: ECB's Draghi pushes German style structural reforms

Germany, Berlin
June 25, 2013 at 14:08 GMT +00:00 · Published

Germany: ECB's Draghi pushes German style structural reforms

The President of the European Central Bank (ECB), Mario Draghi called for a structural reform within european zone, Tuesday, at the 50th anniversary of the German Economic council of the CDU in Berlin.

According to Draghi, Europe is still not as business friendly or competitive enough to address the economic issues it faces. The structural reforms which include lowering tax burdens and cutting unproductive public expenditures will aid growth friendly fiscal consolidation as it did in Germany ten years ago.

The Italian head acknowledged that the short term effects of the reform will appear to hurt the European citizen initially. However, he stood behind the reform for its long term effects, "Structural reforms may hurt a few vested interests, no doubt about that. But it will clearly strengthen the effectiveness, competitiveness, and yes, also the fairness of our economy."

Draghi continued to promote the reform in economic policies by advocating a European Banking union, "The third key issue is ensuring a sound financial system. This is where current efforts to establish a European Banking Union are crucial. The aim of the banking union is to establish transparency, stability, and incentive computability in euro area financial markets."

Mario Draghi was one of the key note speakers at the event which was attended by around 2,700 delegates, including captains of industry, government officials and ambassadors. In the opening speech President of the Economic Council to the Christian Democratic Union (CDU), Kurt Lauk, warned that a direction to the left of the political spectrum would not be the right path for Germany or Europe as a whole.

German Chancellor Angela Merkel was the last to speak at the forum on Tuesday evening, closing the event in support to Draghi's proposed reforms within the Eurozone.

Germany: ECB's Draghi pushes German style structural reforms01:54
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Germany: ECB's Draghi pushes German style structural reforms

The President of the European Central Bank (ECB), Mario Draghi called for a structural reform within european zone, Tuesday, at the 50th anniversary of the German Economic council of the CDU in Berlin.

According to Draghi, Europe is still not as business friendly or competitive enough to address the economic issues it faces. The structural reforms which include lowering tax burdens and cutting unproductive public expenditures will aid growth friendly fiscal consolidation as it did in Germany ten years ago.

The Italian head acknowledged that the short term effects of the reform will appear to hurt the European citizen initially. However, he stood behind the reform for its long term effects, "Structural reforms may hurt a few vested interests, no doubt about that. But it will clearly strengthen the effectiveness, competitiveness, and yes, also the fairness of our economy."

Draghi continued to promote the reform in economic policies by advocating a European Banking union, "The third key issue is ensuring a sound financial system. This is where current efforts to establish a European Banking Union are crucial. The aim of the banking union is to establish transparency, stability, and incentive computability in euro area financial markets."

Mario Draghi was one of the key note speakers at the event which was attended by around 2,700 delegates, including captains of industry, government officials and ambassadors. In the opening speech President of the Economic Council to the Christian Democratic Union (CDU), Kurt Lauk, warned that a direction to the left of the political spectrum would not be the right path for Germany or Europe as a whole.

German Chancellor Angela Merkel was the last to speak at the forum on Tuesday evening, closing the event in support to Draghi's proposed reforms within the Eurozone.