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Draghi: Market reforms must avoid people feeling left behind

Europe
18.10.2017
By our dpa-correspondent and Europe Online    auf Facebook posten  Auf Twitter posten  
Frankfurt (dpa) - European Central Bank chief Mario Draghi called on eurozone member states to guard against the sense of being left behind in sections of community by ensuring that the economic benefits of reforms are spread evenly across society.

Draghi said on Wednesday that the debt crisis which emerged in the 19-member currency bloc about seven years ago should have taught governments that simply highlighting the economic growth benefits of reforms had failed to make them widely accepted among the public.

"We also need to take into account the inclusiveness of economic policies," Draghi told an ECB conference on structural reforms in Frankfurt.

The ECB chief told the conference that there was a perception in parts of the society that economic growth "has not been sufficiently inclusive, and was not always associated with rising living standards for everyone.

"This has fuelled the belief that some have been left behind by the spread of market forces," he said on the issue, which many analysts believe have helped to drive the rise of populist parties in Europe.

"We need to show that reforms can contribute to both efficiency and equity," said Draghi.

He went on say that a number of countries have implemented reforms in recent years which have helped to reduce unemployment - notably Spain and Portugal, but also Italy.

However, he conceded that some reforms will always have negative effects, especially in the short term.

"Public policies have to be designed to help people back into work, and into jobs where they can develop and refine their skills," he said.

 

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