A journalist for almost 10 years, I cover the European Central Bank and the German economy for Bloomberg News in Frankfurt. In a previous life I covered the Vatican for 7 years for several Italian and American media, including Time magazine and Religion News Service. I also worked in radio and as...
Draghi was speaking to the European Parliament in Brussels just a day after German Chancellor Angela Merkel bemoaned that reliable relationships forged since the end of World War II “are to some extent over,” signaling a potentially significant shift in the ties between the U.S. and its trading partners under the administration of President Donald Trump. It also comes amid a euro-area upturn that is being bolstered by domestic consumption as much as exports.
Mario Draghi has become the latest European policy maker to tell the U.S. that it might be heading down the wrong path on trade. The European Central Bank president used an appearance on Monday to tout the euro area’s four-year recovery and say that the key risks are now from external factors. Then he turned his attention to the rhetoric coming from across the Atlantic.
“We remain firmly convinced that an extraordinary amount of monetary policy support, including through our forward guidance, is still necessary,” Draghi said on Monday at his quarterly hearing at the European Parliament’s Economic and Monetary Affairs Committee in Brussels. “Domestic cost pressures, notably from wages, are still insufficient to support a durable and self-sustaining convergence of inflation toward our medium-term objective.”