European Central Bank chief sees improvement in Europe, says he faced ‘perverse’ German angst

The Associated Press 0

BERLIN – The European Central Bank’s president says Europe’s economy is showing encouraging signs though the crisis isn’t yet over — and he says he has faced “perverse angst” among Germans, whose country is the eurozone’s most powerful member.

The 17-nation eurozone is gradually recovering from recession. With inflation low, the ECB’s benchmark interest rate is a record-low 0.25 per cent.

Asked if rates should fall further, Mario Draghi, an Italian, told Monday’s edition of German weekly Der Spiegel there is “no need for immediate action.” He also tackled unease among Germans over the ECB’s actions.

He says: “Each time it was said, for goodness’ sake, this Italian is ruining Germany. There was this perverse angst that things were turning bad, but the opposite has happened: inflation is low and uncertainty reduced.”

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