BRUSSELS (AP) – The head of the European Central Bank says while the economy of the 19-nation eurozone is improving, it still needs substantial stimulus.
At a parliamentary hearing Monday in Brussels, Mario Draghi said “the economic upswing is becoming increasingly solid and continues to broaden across sectors and countries.”
However, he says, wages are not growing enough to push inflation back up to healthy levels.
Draghi says “overall, we remain firmly convinced that an extraordinary amount of monetary support … is still necessary.”
The ECB is pumping 60 billion euros ($67 billion) a month into the eurozone economy to support lending and growth. Whether it signals a tapering off in that program will be the focus of its next meeting on June 8.