March 12, 2020 / 2:38 PM / 21 days ago

Bavarian leader: Germany must think in "Draghi dimensions" to avoid deep crisis

BERLIN, March 12 (Reuters) - Bavarian leader Markus Soeder said on Thursday Germany must do everything it can to avoid an economic crisis caused by the coronavirus, adding that policymakers should take a leaf out of the book of former European Central Bank president Mario Draghi.

At the height of the euro zone debt crisis in 2012, Draghi pledged to do “whatever it takes” to save the euro, a promise that quashed speculation against the bloc’s most heavily indebted countries and was seen as saving the joint currency.

“The feedback we get from business is just as devastating as from the health sector, with long-term consequences,” said Soeder, leader of the Christian Social Union (CSU), the sister party of Chancellor Angela Merkel’s Christian Democratic Union (CDU).

The German government therefore had to act quickly now and put together a broad package of measures to help the private sector, Soeder said.

“We have to act in a similar way as it may have been in the euro and financial crisis and think more in Draghi’s dimensions, ... do everything to prevent a major recession,” Soeder said.

Reporting by Michael Nienaber; Editing by Kevin Liffey

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