Mario Draghi: ‘Darkest clouds over eurozone have passed’

Mario Draghi: ‘Darkest clouds over eurozone have passed’

“This confidence is to a large extent built on the progress that all of us – governments, parliaments, the EU and the ECB – have been able to make during 2012,” he said. “But it is also crucially built on the expectation that progress will persist.”

“The ECB for its part will be there to continue, as it has done successfully now for 14 years, to safeguard price stability,” he said, adding that there were no signs of the central bank deviating from delivering stable prices.

The ECB had shown its commitment to doing what is necessary – within its mandate – to safeguard the stability of the euro, Draghi said, adding: “Only a currency whose future existence is not in doubt can be a stable currency.”

Draghi acknowledged that the reform paths many euro zone countries are pursuing is difficult.

“But there is simply no alternative to the path of reform,” he said. “Despite the good progress so far showing that adjustment is happening, reform efforts need to be sustained … Countries need competitiveness to sustain growth.”

Governments should not ease off their reform drive, he said: “Relative calm in financial markets should not lead to a lowering of our ambitions to fix the structural flaws in the governance framework of the euro area.”

Source: Reuters

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