Mario Draghi, Europe’s recovery might be rolling on somewhat… but it’s definitely not on track

Sir, Claire Jones reports “Draghi insists recovery on track”, August 8.

Draghi has clearly no idea of what he is talking about. The European economy might be moving on by some remaining inertia, but it is most definitely not on track… as it has been forced off the tracks by dumb bank regulators with their risk-weighted-capital requirements based on perceived credit risks.

That Europe accepts to have someone so completely unaware of the difficulties these capital requirements cause for medium and small businesses, entrepreneurs and start-ups, to access bank credit in fair terms as president of the European Central Bank, is mind-blowing.

Of course, if Draghi does understand the distortions in credit allocation that are produced, but still think that the economy can be on track… then that would be even more mind-blowing.