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25 March 2015

Reuters: ECB actions working, but structural reforms needed- Liikanen


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Liikanen noted that determined action by member states would allow the ECB's bond-buying programme and low interest rates to exert the best possible benefit.


ECB policy actions have had a clear positive impact on the euro zone economy, but member states still need to adopt structural reforms to support the recovery, ECB Governing Council member and governor of Finland's central bank Erkki Liikanen said.

"Monetary policy decisions and the measures taken have already had a clear, positive impact on the economic outlook," he said on Wednesday.

The need for structural reforms was particularly clear "in countries where the working-age population is no longer growing or is actually decreasing," he said, adding that reforms were needed especially in product and labour markets.

Liikanen, who made his comments in conjunction with Bank of Finland's forecast update for international economy, added that the accommodative monetary policy could cause imbalances on some markets and areas, and called for readiness in member states to use their macroprudential tools.

Full article on Reuters



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