ECB President Mario Draghi said at the ECON committee of the European Parliament that the central bank’s monetary policy measures “have been very effective”. There was an overall impact of 1.9% on both Eurozone real GDP growth and inflation for the period between 2016 and 2020. The measures are “playing a decisive role” in bring inflation on track to target. But he also emphasized the need to be “patient, persistent and prudent” to ensure inflation remains on a “sustained adjustment path.
Draghi also warned that downside risks to outlook “mainly relate to the threat of increased protectionism”. He emphasized that “strong and united Europe” can help “reap the benefits of economic openness while protecting its citizens against unchecked globalisation”. And, he also urged that in “leading by example”, the EU can lend support to multilateralism and global trade. That requires, domestically, “strong institutions and sound economic governance”.