Morning Must-Read: Jérémie Cohen-Setton: Is this a European U-turn?

Jérémie Cohen-Setton: Is this a European U-turn?: “Mario Draghi is recognizing that the recovery in the euro area…

…remains uniformly weak and that the euro area fiscal stance was not helping the ECB do its job…. French leaders also reintroduced over the weekend the notion of aggregate demand, a concept they had noticeably moved away from with the ‘Pacte de responsabilite’…. Inflation, he noted, has been on a downward path from around 2.5% in the summer of 2012 to 0.4% most recently…. The big news is that Draghi does not (at least now) believe in balanced-budget fundamentalism…. Richard Portes and Philippe Weil write European citizens must hope that their policy makers will recognize that the acute, pressing problem is aggregate demand. Repairing the credit system, implementing serious reforms of state expenditure and taxation, creating more flexible labor markets, finally opening the services market to cross-border competition–all are indeed very important. But they will not liberate the eurozone from stagnation…