The fear of Eurozone falling into a deflationary trap, resulted to the fall of the European market.

The president of the European Central Bank, Mario Draghi, testified today before the Economic Affairs Committee that the recovery of eurozone loses momentum.

Furthermore, he predicted that inflation will remain low, before rising in 2015 to 2016. The central banker added that the involvement of European banks in the 4 year loan program (TLTRO), was in line with the predictions, although according to him  is still too early to evaluate the impact of the program on real economy.

Meanwhile, speaking to the European Parliament, the ECB President Mario Draghi admitted that the recovery of Eurozone is losing momentum, although the risks are decreasing.

Further, he stressed that without a combination of reforms, no monetary policy  will have a serious impact on the economy, while he concluded by stating that the ECB is ready to use additional non-standard measures, within its mission.