On October 31 Draghi leaves the Presidency of the European Central Bank
After eight years of struggle culminating in the famous "whatever it takes", ECB President Mario Draghi held his last press conference. He will leave office on October 31st.
The Draghi post opens with an ECB board divided on the steps to be taken, with a substantial miss of the main target: inflation and, a European economy on the verge of contraction.
"But what a ride ...". The "bumble bee" (London speech) flew, needed help but did it, although European governments continued to exploit the "free ride" offered by the ECB by postponing structural and fiscal reforms.
On the technical side, Draghi today confirmed that growth is slow and the risks of an economic contraction are present. But the occupation resists and wages continue to rise; so, sooner or later, there will be an effect on inflation. An accommodating monetary policy continues to be necessary, in addition, governments must finally implement structural reforms and, where there is space, fiscal reforms.
Slightly reduced geopolitical risks
The risk of a hard Brexit has decreased. However, uncertainties remain due to the commercial disputes between China and the United States, which are clearly slowing down the economies and in addition - as Christine Lagarde has already commented - make it necessary to create "margins of manoeuvre" higher than normal.
"Never give up”
"Never give up": was the last comment from Super Mario, the one we'll take with us behind his incredible eight years at the ECB. With the example of what it means to focus on what you can change and accept what you can't.
Simplify Partners Management Team