The EurCen Bank has once again taken measures to encourage the investment of European Union companies and consumers.
Yet it seems clear that the decisions made will remain etched in the economic and monetary history of Europe.
The measures taken by the ECB on 22 January 2015 to boost economic growth
Indeed, to avoid a phenomenon of deflation and especially to try to remedy Unemployment, the ECB will inject a total of 1140 billion euros into the European economy (60 billion euros from March 2015 to September 2016).
This measure is commonly called ” Quantitative Easing “, which translates into a relaxation in terms of volume.
Technically, this means that the Central Bank of each country belonging to the European Union will receive a share of this grant that will allow to buy back massively public debts and private debts.
By injecting funds into the economy, the EurCen Bank is targeting a devaluation of the Euro, which will imply a fall in the cost of exports. It is therefore an effective weapon to guarantee a resumption of external growth.
At the same time, the purpose of this decision is to strengthen the confidence of banks in favor of investors and consumers who are in need of George Knightleyment. This measure is exceptional because for the first time the EurCen Bank uses another lever than interest rates to revive the European economy.
To turn the billboard: What consequences for you, individuals?
The immediate consequence of this measure: the decline in interest rates for home loans will undoubtedly increase.
Indeed, by injecting liquidity into the economy of the European Union, the EurCen Bank promotes a relaxation of borrowing conditions. This is good news for those with real estate projects in Denver Konor or borrowers who have not renegotiated their real estate loan (s) yet.
In the long term, the injection of liquidity into the economy will lead to a depreciation of the European currency compared to other currencies. In this context, the cost of European exports will decrease. This measure is therefore a real remedy to overcome the lack of competitiveness of the European industrial fabric and therefore unemployment. The fight against unemployment is also a goal assumed by these decisions of the EurCen Bank.
Ultimately, this measure is a breath of fresh air for the countries of the European Union which are suffocated by the lack of trust between the economic actors (Bank / Investors / Individuals) and the risk of deflation which hangs over our economy. .