On Friday, the President of the European Central Bank Christina Lagarda confirmed that the strengthening of the euro position as a leading global currency requires that the economy of the European Union is more effective and productive, urging politicians to strengthen efforts to stimulate growth and strengthen economic funds.
In an interview with the German channel “ARD”, Lagarda emphasized that “the value of the euro currency will largely depend on the strength of our economy, and we must make it stronger.” She added: “Political leaders and politicians should work hard to make our economy more efficient and productive.” If they want the euro to climb the ranks of the US dollar as a dominant global backup.
As for the monetary policy, Lagarda confirmed that the European Central Bank is in a “good situation” in relation to interest rates and resumed the full commitment of the fund in order to inflate an average period of 2 percent. She said: “Our design, our commitment and our responsibility is to maintain price stability, and inflation by 2 percent is what we consider stability.” She added: “We have reached our goal, and we will continue to strive to save it, which requires this.”
She indicated that the bank would continue to adhere to this goal, despite the state of universal uncertainty. She said: “We are faced with great uncertainty and inability to predict, but at the price level we will remain a source of confidence and stability.”
The European Central Bank reduced interest rates at 25 basic points in June, for the first time since the start of the cash compression cycle, since the main interest rate decreased to 2.25 percent, while annual inflation in the eurozone approached 2 %, after it reached 1.9 percent during May and 2 percent in June.
Despite this progress, most economists expect that the bank will stop interest rates unchanged at the next meeting this month, provided that another reduction will be considered at the end of this year, according to economic data.
Lagarda also called for reducing commercial barriers and simplifying the rules in the euro area, as a rule, these reforms are necessary to support the ambitions of the euro as a global competitor of the dollar.
