mario draghi : hearing of the committee on economic and monetary affairs of the european parliament introductory statement by mr mario draghi, president of the european central bank, at the econ committee of the european parliament, brussels, 26 november 2018. * * * mr chairman, honourable members of the economic and monetary affairs committee, ladies and gentlemen, it is a pleasure to be back at the european parliament and to appear again before your committee for our last exchange of views of the year. as you have chosen very topical issues for our discussion today, i will get started on the substance without further ado. first, i will share with you our assessment of the economic outlook for the euro area and the implications for the ecb ’ s monetary policy. second, i will discuss why designing and implementing the necessary reforms to economic and monetary union ( emu ) would support the ecb ’ s monetary policy – and thus the euro area economy at large. the euro area outlook and the ecb ’ s monetary policy the data that have become available since my last visit in september have been somewhat weaker than expected. euro area gdp grew by 0. 2 % in the third quarter. this follows growth of 0. 4 % in both the first and second quarter of 2018. the loss in growth momentum mainly reflects weaker trade growth, but also some country and sector - specific factors. do we think this slowdown is temporary or more long - lasting? a gradual slowdown is normal as expansions mature and growth converges towards its long - run potential. indeed, looking further ahead, employment growth is expected to slow somewhat as labour supply shortages become more binding. savings ratios will also normalise and temper consumption dynamics to some degree. this is also reflected in our staff projections from september, which see annual growth at 2. 0 % for this year, and then slightly lower rates of 1. 8 % in 2019 and 1. 7 % in 2020. some of the slowdown may also be temporary. in fact, the latest data already show some normalising of production in the car industry which has been impeded by one - off factors. in addition, insofar as world trade stabilises, albeit at a lower level, its drag on growth could also be temporary. at the same time, risks relating to protectionism, vulnerabilities in emerging markets and financial market volatility remain prominent. underlying drivers of domestic demand remain in place. household income, which underpins domestic demand, continues to

coordination to common decision - making, from shared rules to 3 / 4 bis central bankers'speeches institutions, is necessary but it requires time. this should not be an excuse for inaction. many of the basic steps for this to happen need to be taken now, namely designing an ambitious reform plan and building trust among all parties. i am confident that you and the eu leaders will again play an instrumental role in moving this emu agenda forward, so that we can deliver tangible results to mark the 20th anniversary of the euro. thank you for your attention. i am now at your disposal for questions. 1 opinion on a proposal for a regulation on the establishment of a european investment stabilisation function ( con / 2018 / 51 ), 9. 11. 2018. www. ecb. europa. eu / ecb / legal / pdf / en _ con _ 2018 _ 51 _ signed. pdf 2 opinion on a proposal for a regulation on the establishment of the european monetary fund ( con / 2018 / 20 ), oj c 220, 25. 6. 2018, p. 2. www. ecb. europa. eu / ecb / legal / pdf / celex _ 52018ab0020 _ en _ txt. pdf 4 / 4 bis central bankers'speeches