ECB: Trade peace would remove big drag on eurozone growth

ECB: Trade peace would remove big drag on eurozone growth
President of European Central Bank Mario Draghi talks to the media during a press conference following the meeting of the ECB governing council in Frankfurt, Germany,Thursday, Jan.24, 2019. (Arne Dedert/dpa via AP)

FRANKFURT, Germany (AP) — European Central Bank head Mario Draghi says that much of the drag on the eurozone economy would ease if “clarity and peace” were to break out in the trade dispute between the U.S. and China.

Draghi says ECB officials think the key factor is how long the various causes for slower growth might persist, such as uncertainty about tariffs and whether Britain will leave the European Union without a negotiated deal.

He said Monday in the European Parliament that members of the bank’s governing council expressed the view during their meeting Thursday that if the U.S.-China trade dispute were settled “much of this slowdown would probably wash out.”

Economic growth in Europe slowed in the last half of 2018 and indicators at the start of this year have been weak.