During a debate on the future of Europe, Milligan argued that Draghi was doing “an appalling job” and should be asked to resign with immediate effect, chiefly because of the ECB’s failure to improve credit conditions for businesses in the region.
“Money supply growth in Europe is about 1.5% per annum,” Milligan explained. “Senior loan officer surveys show that credit availability is weakening in many countries.
“This is why I am so upset with Draghi and the European Central Bank. They have reduced the borrowing costs for government, [but] they have not reduced the borrowing costs for many companies. And that, I think, is an immense headwind for firms across Europe.”
In addition, Milligan took issue with the ECB’s record on the euro, which he said had been allowed to appreciate too far against other currencies, offsetting “hard-fought” gains in productivity. Milligan argued that the euro should trade at about 1.15 to the dollar, versus recent levels of 1.30-1.35.
However, there was strong support for Draghi from the audience, which included 65 professional fund selectors from across Europe, with some €1trn in assets under management. Just 19% of congress delegates supported the prospect of Draghi resigning his position.
Platinum members can view a full breakdown of the Pan-European Congress voting here.