Pablo Zalba MEP, Vice-Chairman of the European Parliament's Economic and Monetary Affairs Committee, said today that any expansionary measures to be adopted by the European Central Bank (ECB) to boost the European economy are welcome but he warned that the crisis will only come to an end if structural reforms and fiscal consolidation go ahead, especially in Member States that are suffering from slow economic growth.
"Expansionary conventional and unconventional monetary policy by itself will not drive aggregate demand. We need reforms and fiscal consolidation at national level, otherwise these types of measures will not have the effect we all want and expect”, he pointed out.
In his view, the measures adopted by the ECB should not be used by Member States as an opportunity to avoid structural reforms: “Any kind of measure that the ECB adopts must be used as part of the right policy mix. Monetary policy cannot support growth and job creation by itself, it must be complemented with reforms and fiscal policies”, he underlined.
Zalba was speaking following the vote today in the committee on his Report on the assessment of the ECB. The Report welcomes the ECB’s swift reaction to face economic downturn in a challenging environment.