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Draghi Urges ‘Significant’ Fiscal Response to an Economic Slump

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A "significant degree of monetary stimulus" is needed, says ECB President Mario Draghi.Source: Bloomberg

European Central Bank President Mario Draghi urged governments to ready their ammunition, saying monetary policy alone cannot combat a “significant worsening” of the economy.

Despite years of exceptional ECB support, the euro-area economy is in the throes of a slowdown in growth and inflation remains weak. In Germany, typically the region’s stalwart, manufacturing is mired in a slump as trade tensions weigh on exports and auto factories struggle to cope with changes in the industry.