Mr Draghi’s call hinted at ECB frustration over the loss of political momentum behind Europe’s economic integration.
While European leaders last year created a €500 billion eurozone rescue system, rigid budget coordination rules, and a bureaucratic infrastructure in Brussels to manage the currency union, those integration efforts have stalled amid growing voter anger over austerity measures that have accompanied the new institutions and rules.
“Collectively, we have to specify a path for the euro – how we see ourselves in 10 years from now”, Mr Draghi said. In addition, though Mr Draghi repeated his call for more growth-orientated policies to be adopted by political leaders, he played down hopes of imminent ECB action to boost economic growth.
While Mr Draghi paid public tribute to the Spanish government’s reform efforts, Madrid is being pushed privately by the ECB to clarify steps needed to strengthen its banking system and restore the country’s credibility in the eyes of financial markets. In his comments, Mr Draghi also warned that “several governments need to be more ambitious” in correcting fiscal, financial and structural deficiencies.
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