ECB head Draghi: Trade protectionism is main risk to economy

FRANKFURT, Germany (AP) — European Central Bank head Mario Draghi says that new trade barriers are the main risk to Europe’s economy and that it’s up to the EU to “lead by example” by supporting economic openness.

Draghi told the European parliament Monday that the bank had decided to phase out its 2.4 trillion-euro, three-year bond purchase stimulus program at year-end because inflation is finally in line with the ECB’s goal of just under 2 percent, with economic growth creating 8.4 million jobs.

He said that “risks to the outlook mainly relate to the threat of increased protectionism.”

U.S. President Donald Trump has imposed tariffs on steel and aluminum imports and on a range of Chinese goods, leading to retaliation from China, the EU and others.

This article provided by NewsEdge.