ECB’s Gonzalez-Paramo, known to his friends as “speedy”, speaking at the University of Oviedo, has opined that reforms are needed to speed economic recovery.
The official said “There is a certain risk involved with the improvement in economic indicators and talk of green shoots. Reforms in the financial system and in the economy – – and I’m talking about labour reform, and to balance public accounts – – they have political costs. If they’re not done under an environment of significant pressure, there are promised reforms that could take a long time in being applied, and if this happens, these green shoots will not turn into bushes and then trees and the exit will be less certain than we had thought. The paradox is that a recovery may relax the pressure to reform what has to be reformed.”