This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

ECB Faces Sluggish Economy With Rates Already Low

So far the other eurozone countries have had to bail out three small countries â¿¿ Greece, Ireland and Portugal â¿¿ with rescue loans along with the International Monetary Fund. Leaders are now trying to support Spain and Italy, which are much larger. A full scale bailout for both would stretch the resources of the other countries.

At his news conference, Draghi was expected to underline that Spain needs to agree to strict conditions before it can get that help. The ECB has stressed that countries must first apply for financial help from the eurozone bailout fund, the European Stability Mechanism, and agree to a list of steps to reduce their deficits.

Spain's Prime Minister Mariano Rajoy has held off applying, apparently concerned that surrendering that much authority over his country's finances would be politically unpopular.

Rajoy's delay has started to unnerve financial markets that relaxed after the ECB announced the bond purchase plans. Interest rates on short-term Spanish debt have risen.

Draghi will also be questioned about his outlook for the eurozone's troubled economy. Lack of growth is a key obstacle to efforts to end the debt crisis because growth makes a country's debt burden smaller relative to the size of the overall economy.

The eurozone shrank 0.2 percent in the second quarter and is in danger of shrinking again in the third quarter. A recession is typically defined as two straight quarters of economic contraction. Unemployment is at 11.4 percent, the highest since the shared euro currency was introduced by the European Union in 1999.

Copyright 2011 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 16,654.77 +369.26 2.27%
S&P 500 1,987.66 +47.15 2.43%
NASDAQ 4,812.7080 +115.1720 2.45%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs