Single Currency Remains Strong, ECB Chief Draghi Insists

Single Currency Remains Strong, ECB Chief Draghi Insists

The president of the European Central Bank, Mario Draghi, has brushed aside concerns over a new Euro crisis caused by the political upheaval in Italy to insist that the currency remains strong.

Draghi told a press conference in Riga, where he attended a meeting of the ECB Governing Council, that his trust in the single currency remained firm despite speculation about a Euro meltdown triggered by the Italians.

He said: “The euro is the currency of 340 million people and enjoys the support of 74 per cent of citizens across the euro area. And more countries want to join the euro today.”

Draghi added: “You can draw your own conclusions, but one of these conclusions is that the Euro is irreversible because it is strong, because people want it and because it is of no benefit to anybody to discuss its existence.”

There are fears among investors that the new right-wing Italian government may move to leave the single currency, even though senior members of the administration have pledged their commitment to the single currency.

Draghi, who was governor of the Bank of Italy from 2006-11, said: “We should not overdramatise policy changes.”

After a run of poor performances, the value of the Euro rallied after Draghi’s upbeat comments and his subsequent confirmation that the ECB’s quantitive-easing programme would be phased out this year, enjoying its biggest rise since last August at one point.

Draghi also expressed concerns to the European Parliament over the Chinese slow-down and the knock-on effect on emerging markets, warning that contagion could put further strain on the deflationary Eurozone.

He added that it was too early to sign off on any new plan to address these issues, insisting that the ECB needed more time to decide on its response.

(Banner image: European Central Bank )

newsletter
Join our mailing list and never miss an update !
Slower Ship Speeds Found to Benefit  Environment and Human Health

Slower Ship Speeds Found to Benefit Environment and Human Health

A new joint report from two Brussels based environmental NGOs has found that slower ship speeds would massively reduce the damage shipping is causing to human health, nature and the

Merkel Scolds Macron for ‘NATO Is Brain Dead’ Comment

Merkel Scolds Macron for ‘NATO Is Brain Dead’ Comment

German Chancellor Angela Merkel has in effect scolded publicly French President Emmanuel Macron for his recent comment that “NATO is brain dead”. Macron’s controversial comment came earlier

Macron’s ‘Africans over Eastern Europeans’ Comment Shows EU Must Start Getting Its Priorities Right

Macron’s ‘Africans over Eastern Europeans’ Comment Shows EU Must Start Getting Its Priorities Right

France’s President Emmanuel Macron, the wannabe top leader of the post-Brexit, post-Merkel European Union, has demonstrated his questionably and wrongfully low regard for Eastern Europe twice over the