Draghi defends ECB moves

ECB President Mario Draghi on Wednesday rejected criticism of the central bank's loose monetary policy.

He told the German Bundestag's European Affairs Committee that sub-zero interest rates were a necessity and urged governments including Germany's to share more of the burden.

German legislators had argued the ECB's monetary policy had damaged the eurozone and fueled the rise of the populist right.

German Finance Minister Wolfgang Schäuble and many others in the government had expressed concerns a protracted period of ultra-low interest rates had the potential of upsetting financial stability, destroy household savings and destabilize banks, with the latter finding it increasingly hard to earn money through conventional business channels.

A net beneficiary?

Draghi, for his part, insisted Germany had been a net beneficiary of the ECB's most recent moves.

"On balance, savers, employees, entrepreneurs, pensioners and taxpayers across the euro area are better off because of our actions - today and tomorrow," Draghi said.

He argued the ECB's huge bond-buying program had revived spending by firms and households.

The ECB chief once again called for more government spending, adding that he could not currently see any overheating in the German economy right now.

But his remarks didn't cut any ice with lawmakers in Berlin representing a nation where balancing the budget is a national obsession and a cornerstone of the finance minister's long-term strategy.

hg/sri (Reuters, dpa)