ECB's Draghi says low rates a necessity even if Germany objects

FRANKFURT (Reuters) - Low European Central Bank rates are needed to revive growth and governments need to do their part if they want rates to rise to normal levels, ECB President Mario Draghi said on Wednesday, responding to criticism from German lawmakers.

"Our monetary policy has supported growth and employment and will eventually bring inflation back to our aim, he told the European Affairs committee of Germany's Bundestag in Berlin.

"Low interest rates today are necessary for a return to higher interest rates in the future," he said. "What we need now is to allow our measures to develop their full impact."

Relations between the ECB and Germany, the euro zone's biggest economy, have been tense in recent years as Draghi pushed through unprecedented stimulus measures, much to the objection of Germany.

With rates deep in negative territory and the ECB buying 80 billion euros ($89.72 billion) of assets per month, Germans argue that low rates upset financial stability, consume household savings, destabilise banks and reward financial mismanagement by euro zone governments.

Though the conflict has cooled, fresh signs of tension have been evident recently as the ECB contemplates even more stimulus to lift still lacklustre inflation and calls on Germany to do spend more to boost growth.

"In order to reap the full benefits of our monetary policy measures, other policy areas must contribute much more decisively, both at the national and at the European level," Draghi said.

(Reporting by Balazs Koranyi and Francesco Canepa)