Euro zone better placed to survive members' instability, ECB's Draghi says

PARIS Wed Oct 2, 2013 9:20am EDT

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PARIS (Reuters) - The euro zone and its currency are in better shape than they were, and less susceptible to political instability in countries like Italy, Portugal and Greece, European Central Bank President Mario Draghi said on Wednesday.

Asked about the recent political problems in Italy, Draghi told a news conference that he would only speak in general terms, but that while such instability could cause local economic problems, it did not spread to the bloc as a whole.

"It doesn't really hurt the foundation of the euro zone as it used to do a few years ago," he told a news conference in Paris. "The euro zone and the euro (are) more resilient than (they were) a few years ago.

He said the ECB's pledge to provide funds in some circumstances to countries in difficulty had helped.

"(Also) the governance of the euro area has progressed significantly," he said.

Draghi was speaking after the ECB left interest rates on hold.

(Reporting by Jeremy Gaunt)

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Comments (1)
breezinthru wrote:
Say it is so does not make it so.

Italy is less politically unstable today than it was a few days ago, but the Eurozone banking system’s practice of weighting its own sovereign debt as zero risk conceals an enormous and ugly financial flaw.

Oct 03, 2013 8:49am EDT  --  Report as abuse
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