Published On: Mon, Sep 26th, 2016

Mario Draghi Presses For U.K. Not To Receive Any Benefits In Brexit Negotiations

Mario Draghi

On Monday, Mario Draghi outlined that the United Kingdom should not be given any special benefits for single-market access during negotiations of its departure from the EU.

“Any outcome should ensure that all participants are subject to the same rules,” the European Central Bank president told European Parliament lawmakers on Monday. “It is very hard to imagine that any agreement that will be perceived as discriminatory against some subjects or in favor of other subjects could be a source of stability for the future of our EU.”

Following the referendum on June 23, the U.K.’s government has been left in limbo as to whether it will be able to retain access to the single European market without adhering to conditions set in the region such as free movement of labour.

Poland has already been outspoken in the fact that it could veto any agreement which restricts the rights of its citizens to live and work throughout the bloc’s single market.

Whilst the ECB has no set role in the negotiations between Britain and the EU it could potentially put itself in the position of an advisor according to Draghi.

This was at the same time as when he pushed for the regions governments to appease rising public discontent, during his most recent warning that monetary policy can’t purely drive the region’s recovery.

“Europeans are calling on our institutions to bring tangible benefits to their everyday lives,” he said in the testimony in Brussels. “Actions by national governments are needed to unleash growth, reduce unemployment and empower individuals, while offering essential protections for the most vulnerable.”

The head of the ECB has been increasing outspoken on his views that politicians must boost spending and reform their economies as the European bank attempts to stimulate inflation.

Draghi said“Low rates are a symptom of the underlying economic situation. Other policy actors need to do their part.”

Executive Board member Benoit Coeure discussed the issue in Rome, where he said that the European Union is navigating a “difficult phase,” and national governments must act on their objectives.

“If fiscal and economic policies do not in fact play this role, we risk being trapped in a low growth, low interest-rate equilibrium,” Coeure said.

“Moving from interest rates being ‘low for long’ to being ‘low forever’ would severely limit the room for maneuver for conventional monetary-policy tools but, even more worryingly, it would threaten the contract between generations as well as risk tearing up our social fabric.”

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