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The Editors

Europe Must Rediscover Fiscal Policy

Mario Draghi has done about all he can do.
What he doesn't say is important.

What he doesn't say is important.

Photographer: Jasper Juinen/Bloomberg

Investors weren’t expecting anything from European Central Bank President Mario Draghi on Thursday, and he delivered in full. The ECB’s policy is working just fine and doesn’t need to change, he told assembled reporters. Thank you for coming.

Draghi’s right: Things would be much worse in the euro zone if the ECB hadn’t tested the limits of monetary policy with its super-low interest rates and huge, ongoing purchases of bonds. Yet despite the ECB’s efforts, demand is still too low, growth is still too slow, inflation is close to zero, and Europe’s governments are doing too little about it.