Eurozone Is Healthier, but Caution Still Prevails ; E.C.B. Leader Implores Chronic Underachievers to Reform Economies

By Ewing, Jack | International New York Times, May 23, 2015 | Go to article overview

Eurozone Is Healthier, but Caution Still Prevails ; E.C.B. Leader Implores Chronic Underachievers to Reform Economies


Ewing, Jack, International New York Times


But governments need to address impediments to investment and growth like bureaucracy, rules for hiring and firing, and overregulation, Mario Draghi said.

The eurozone is in better shape than it has been since the beginning of the financial crisis, but political leaders need to overhaul their chronically underachieving economies, the president of the European Central Bank said on Friday.

"The economic outlook for the euro area is brighter today than it has been for seven long years," Mario Draghi, the central bank's president, said at the institution's gathering of economists and central bankers at a golf resort in Sintra, Portugal -- the European version of the annual conference for Federal Reserve officials in Jackson Hole, Wyo.

But he said governments needed to address impediments to investment and growth like bureaucracy, legal barriers to hiring and firing, and overregulation.

The economic recovery, attributed partly to central bank stimulus measures, created "near perfect conditions for governments to engage more systematically in the structural reforms that will anchor the return to growth," Mr. Draghi said.

Mr. Draghi reiterated that having a flexible, well-performing economy should be a condition for membership in the eurozone, "part of our common DNA."

It was hardly the first time that Mr. Draghi has harangued eurozone political leaders to do more to fix their underachieving economies. He noted wryly that he and other members of the European Central Bank's executive board had pleaded for structural overhauls in one-third of their speeches. Members of the Federal Reserve's board of governors spoke about such overhauls only 2 percent of the time, he said.

Elected officials, however, have often resisted changing laws and regulations that favor certain interest groups, like taxi drivers or accountants, but act as a drag on the economy as a whole.

Political leaders are also reluctant to relax laws that make it hard for companies to dismiss unwanted workers. Such laws are seen as a disincentive for companies to hire new employees. Unemployment in Germany plunged after it loosened labor protections. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

Eurozone Is Healthier, but Caution Still Prevails ; E.C.B. Leader Implores Chronic Underachievers to Reform Economies
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.