Draghi calls for eurozone reform strategy

Mario
Draghi, the president of the European Central Bank, has called for
eurozone leaders to come up with a “clear vision” for the future of the
currency bloc.The appeal from Draghi, speaking in the European
Parliament today (31 May), increases the pressure on EU leaders to come
up with a comprehensive strategy for structural reform at their next
summit, on 28-29 June.

“Can the ECB fill the vacuum of lack of
action by national governments on fiscal growth? The answer is no,”
Draghi told MEPs. “Can the ECB fill the vacuum of the lack of action by
national governments on the structural problem? The answer is no.”

Draghi
said that existing eurozone governance was “unsustainable” and that it
was “better to err by too much in the very beginning rather than by too
little”.

He added: “The next step is to clarify what is the
vision a certain number of years from now. The sooner this is specified,
the better it is.”

Mario Monti, the prime minister of Italy,
also spoke in Brussels today, by video-link from Italy to the Brussels
Economic Forum, organised by the European Commission.

He hinted
that Germany’s government should reconsider its hard line on austerity
in the eurozone. “We have to be mindful of the sustainability of fiscal
discipline,” he said. “Public opinion in this country [Italy] is turning
against the European prescription, although we take particular care to
never say we are doing these things because Brussels wants us to do it,”
Monti said.

“There will sooner or later be a backlash against
the fiscal discipline we are imposing on this country,” he warned.
“Germany should reflect quickly but deeply and act on these matters.”