"The persistence of such differences creates the risk of permanent imbalances. With this in mind, I believe that structural reforms in each country are enough of a common interest to justify that they are made subject to discipline at the community level."
-Mario Draghi, ECB President
Mario Draghi, the ECB President, articulated a new set of rules on economic reforms that the Eurozone member states should adopt to narrow economic differences between the countries. Draghi said differences in competitiveness of 18 member economies are as much a risk to the region's economic health as differences in their debt loads. Draghi has repeatedly said the ECB's monetary policy is not sufficient to support the region's fragile recovery, therefore he believes the Euro area needs more centralized powers to urge governments to overhaul their economies. The ECB President also warned that, without reforms, imbalances between member states risked becoming permanent. Draghi has frequently urged the Eurozone governments to take steps to boost growth, such as making it easier for companies to hire and fire workers, removing red tape to starting a business, and rolling back regulations that limit competition. But it was the first time that Draghi had proposed that such changes become an obligation for Eurozone members. He welcomed economic developments in countries including Spain and Greece, which have seen their exports increasing as a result of measures taken to improve the business climate.
Draghi also reiterated his concern about too-low inflation in the Eurozone, and that the ECB stands ready to use "unconventional instruments within its mandate" should that problem persist.
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