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| ECB chief Mario Draghi plays down eurozone warning | ECB chief Mario Draghi plays down eurozone warning |
| (40 minutes later) | |
| The president of the European Central Bank (ECB), Mario Draghi, has said he has "no doubts" about the euro's ability to survive the current crisis. | The president of the European Central Bank (ECB), Mario Draghi, has said he has "no doubts" about the euro's ability to survive the current crisis. |
| Speaking to the European Parliament's Committee on Economic and Monetary Affairs, he was asked about a href="http://www.ft.com/cms/s/0/15bcafb0-296c-11e1-8b1a-00144feabdc0.html#axzz1gzyokYSt" >Financial Times interview in which he warned of the costs of a eurozone break-up. | |
| But he said he believed in the currency's "permanence". | But he said he believed in the currency's "permanence". |
| He also said that trust needed to return to the eurozone. | |
| Mr Draghi had told the FT that countries that left the eurozone would create "a big inflation" and would find themselves in "a much weaker position". | Mr Draghi had told the FT that countries that left the eurozone would create "a big inflation" and would find themselves in "a much weaker position". |
| The newspaper compared his comments with the rhetoric of his predecessor, Jean-Claude Trichet, who had dismissed a break-up of the eurozone as "absurd". | The newspaper compared his comments with the rhetoric of his predecessor, Jean-Claude Trichet, who had dismissed a break-up of the eurozone as "absurd". |
| Mr Draghi told the committee: "I have no doubts whatsoever about the strength of the euro, about its permanence, about its irreversibility. | Mr Draghi told the committee: "I have no doubts whatsoever about the strength of the euro, about its permanence, about its irreversibility. |
| "But you have a lot of people, especially outside the euro area, who spend a lot of time in what I call morbid speculation, asking 'what if, what if'." | "But you have a lot of people, especially outside the euro area, who spend a lot of time in what I call morbid speculation, asking 'what if, what if'." |
| Mr Draghi replaced Jean-Claude Trichet at the ECB on 1 November 2011. | Mr Draghi replaced Jean-Claude Trichet at the ECB on 1 November 2011. |
| 'Forbidden' | |
| He said the ECB welcomed "the decisions of the heads of state or government of the euro area to strengthen the EFSF (European Financial Stability Facility) and the ESM (European Stability Mechanism) in a number of areas". | |
| He said the ECB's primary task was to safeguard price stability. | |
| The ECB has come under increasing pressure to simply print more money to help governments repay their debts, with France among those calling for the central bank to become a lender of last resort. | |
| But the bank has so far refused to do so, insisting that it is up to national governments to put their houses in order. | |
| Mr Draghi said the European Union treaty "forbids monetary financing of states" by the ECB. | |
| He also said that the issue of reducing the reliance on credit rating agencies must be addressed, an area in which regulators should lead the way. |