- Mario Draghi, ECB President
The European Central Bank President Mario Draghi said the central bank "is ready to do it part" in March if the financial market volatility or the pass-through effect of low oil prices reduces inflation expectations. Draghi also added that fiscal policies including public investment and lower taxation should put the Euro area's economy on a firmer ground. ECB President welcomed improvements in the banking sector, saying that Euro bloc's banks have significantly strengthened their capital positions. However, Draghi acknowledged that some parts of the banking sector still faced a number of challenges, including "uncertainty about litigation and restructuring costs in a number of banks working through a stock legacy assets. Last week saw renewed market volatility, particularly on Euro zone bank shares, which Draghi said was due to slowing growth in emerging markets and falling commodity prices, as well as anticipation that new financial regulations and lower interest rates would drag down bank profits.
Meanwhile, the Euro zone's trade surplus widened in December due to a steep decline in imported energy prices. According to Eurostat, the trade surplus of the currency bloc surged to 24.3 billion euros in the reported month, up from 23.6 billion euros a year earlier. Both exports and imports increased 3% compared with December 2014.
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