Pitfalls in the ECB plans. Fundamental analysis for 26.08.2014

Mario Draghi’s Friday’s speech in Kansas City marked a significant shift in emphasis in the policy of the ECB. However, over the years of the monetary union the Europeans have taken on so many restrictive measures that the practical realization of all that Draghi said would be extremely difficult. In fact, he shifted the responsibility for low inflation in the national government, calling the last to think about the growth of government spending.

The fact is that as soon as there was a question about the need to tighten the belt, the European capitals went about it in the simplest way - they mercilessly closed long-term investment projects, which could have served as a basis for future growth. The logic here is more than clear as for the ordinary voter a set of social benefits is far more important. And now Draghi strongly suggests that governments begin to invest in infrastructure.