Italian Prime Minister Mario Draghi calls for more economic stimulus in European countries to bolster growth and bring it back to pre-pandemic levels.

“Protracted uncertainty means that the case for monetary and fiscal expansion remains compelling,” said the former European Central Bank (ECB) chief in a speech in Barcelona on Friday.

According to him, the objective won’t be achieved “without additional effort” as such, they need to “act on it promptly and effectively.”

The ex-central banker is known for expansive policy easing. The euro-zone economy’s public finances are actually propped up by ECB support.

While the supply side of economies is protected, “we must now ensure that demand rises to meet those levels of supply,” said Draghi, adding: Europe “should aim to exceed the pre-pandemic growth trajectory.”

After suffering a contraction of 9% in 2020, Italy is seen growing 4.6% this year by the ECB.

Draghi also shared a forecast of 4.2% but said these figures would be revised upwards “significantly” as confidence returns among families and companies.

ECB President Christine Lagarde agrees, and the decision to keep emergency bond-buying at elevated levels last week was heavily influenced by her comments when she said it’s “far too early” and “actually unnecessary” to even think about reducing stimulus right now.

“It’s too early, it’s premature, it’s unnecessary to discuss those longer-term issues,” she reiterated.

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