Draghi: Eurozone at risk of lasting economic damage

Europe is at risk of suffering lasting economic damage from weak productivity and low growth, European Central Bank president Mario Draghi warned yesterday, underscoring his argument that monetary policy alone cannot end the bloc’s economic malady.

The ECB has been easing policy aggressively to boost growth and inflation in recent years with little to show for its efforts, fuelling arguments that monetary policy was at its limits and governments needed to help out.

“We do not let inflation undershoot our objective for longer than is avoidable given the nature of the shocks we face,” Mr Draghi told the Brussels Economic Forum.