
Euro structure is 'unsustainable,' ECB chief warns
May 31, 2012Associated Press
From foxnews.com
FRANKFURT, Germany – The head of the European Central Bank warned Thursday that the euro currency union is "unsustainable" without stronger political and financial ties, and called for a new course to save it from a crippling debt crisis.
Mario Draghi heaped criticism on European political leaders for being slow to respond to the 2½-year crisis, saying delays and half-measures had only made the situation worse.
Speaking to the European Parliament in Brussels, Draghi said the central bank has done what it could to fight the problems by reducing interest rates and giving $1.2 trillion (€1 trillion) in emergency loans to banks. Now, he said, it is up to the 17 member countries to devise a broad vision for the future.
The ECB cannot "fill the vacuum of the lack of action by national governments," he said, urging sweeping reforms to spur growth, reduce deficits and create a Europe-wide banking regulator.
Beyond that, the euro needs a fundamental reworking of its rules and management, he said, calling the current structure "unsustainable unless further steps are taken."