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ECB president Draghi now up to the mic in Frankfurt 1 Oct

  • vested interests must be tackled
  • reforms must address equity as well as efficiency
  • ECB research finds no convincing evidence that high interest rates lead to more reforms
No mon pol comments in his opening remarks at the ECB conf as expected given the speech title:  "Structural reforms in the euro area"

Says the Draghster:

"Let me sum up.

The crisis has confirmed that more flexible economies are more resilient, especially for countries that are part of a monetary union. Lessons about how to design and implement reforms so as to maximise their benefits and minimise their short-term costs should be put into practice.

Reforms have to take into account equity as well as efficiency. Vested interests have to be tackled and those who have lost out given proper support.

With monetary policy being accommodative, we now have a window of opportunity to take these measures. I hope the insights at this conference can move this agenda forward."

Perhaps some Q&A later.

EURUSD unfazed 1.1760 EURGBP 0.8919 EURJPY 132.30

Full speech here

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