Mario Draghi, the governor of the European Central Bank, made comments yesterday that challenge recent statements that Europe is out of a recession.
Even though Draghi has upped his growth forecast for 2014, he just shaved his original prediction by a tenth of a point from 1% to 0.9% and warned that there is a chance interest rates could go back down. They are now at historic lows of 0.5%.
Draghi also warned that even though Europe could be out of a recession, any form of recovery will take a long time because the problems that got us here have not been fixed.
Countries should heed this advice and keep pushing their reforms and balancing their budgets.
Cristóbal Montoro, Spain's Minister of Finance, should pay close attention. According to the latest budget data from his ministry, there is a chance that Spain will not meet its 2014 budget goals.
