ECB chief Mario Draghi says worst of euro crisis over
Published: 22nd Mar 2012 10:41:01
European Central Bank President Mario Draghi has said the worst of the eurozone crisis is over.
In an interview with Germany's Bild newspaper, he said the situation in Europe was "stabilising".
Mr Draghi also said that some economic data, including inflation and budget deficits, showed that Europe was doing better than the United States.
But the latest surveys of purchasing managers, released on Thursday, suggest European economies could be flagging.
The European Central Bank chief Mario Draghi is credited with having deflected a much more serious crisis by lending European banks large sums at very low interest rates.
It may be significant that he chose to speak to Bild, Germany's most popular newspaper. Mr Draghi, an Italian, has been portrayed in Germany as too loose with ECB money, in contrast to the more fiscally austere German way”
Over two rounds, one in December and one in February, the Long Term Refinancing Operation injected more than half a trillion euros of new funds into European banks.
In his interview with Bild, Mr Draghi said: "Last autumn, the situation was really critical. It could have come to a dangerous credit crunch for the banks.
"As a result, businesses could have gone bankrupt, because they would have been left high and dry. We had to prevent that."
The Purchasing Managers Indexes (PMI) survey thousands of companies and indicate whether business is expanding or contracting.
The figures for Europe's most important economy, Germany, show that manufacturing activity shrank in March and new orders fell at the fastest pace so far this year.
That contributed to a sharp downturn for the whole eurozone, with the PMI index showing that business conditions deteriorated further in March.
"It's going to be a very poor-looking year at this rate," said Chris Williamson, chief economist at Markit, the company which compiles the PMI surveys.
"We had an uplift at the start of the year, which we hoped was the economy regaining momentum, but it seems to be losing its legs."
At 17:58:23 in SportSunderland have named former Chelsea chief scout Lee Congerton in a newly created role of sporting director.
At 17:56:07 in ScotlandBillionaire investor George Soros has said he does not think it would be possible for an independent Scotland to keep the pound.
At 17:55:24 in SportGuernsey Cricket Board CEO Mark Latter says the poor showing in Malaysia is a temporary blip in their development.
At 17:53:26 in HeadlinesPalestinian militants in the Gaza Strip have fired more than 30 rockets at southern Israel, Israeli officials say.
At 17:46:32 in SportVisually impaired skier Jade Etherington and her guide Caroline Powell say they will "go for broke" in the pursuit of Paralympic gold.
At 17:44:48 in PoliticsDavid Cameron has accused Labour of making "no sense whatsoever" on Europe, after leader Ed Miliband said it was "unlikely" his party would hold a referendum on staying in the EU.
At 17:42:47 in Northern IrelandThree police officers will find out next month if they are to stand trial for perverting the course of justice.
At 17:42:43 in HeadlinesWith too few young people registering for President Obama's beleaguered healthcare plan, the most powerful man in the world subjected himself to a self-deprecating online interview. Twenty four hours later #BBCtrending asks: did it really work?
At 17:41:41 in ScotlandDefence Secretary Philip Hammond has issued a correction in parliament to an answer concerning an incident at the Vulcan submarine reactor test site.
At 17:40:22 in Northern IrelandThe final bill for settling hearing loss claims by former RUC officers could be almost a quarter of a billion pounds.
Harvard CitationBBC News, 2012. ECB chief Mario Draghi says worst of euro crisis over [Online] (Updated 22nd Mar 2012)
Available at: http://www.ukwirednews.com/news/1417994/ECB-chief-Mario-Draghi-says-worst-of-euro-crisis-over [Accessed 12th Mar 2014]
News In Other Categories
King, the games developer behind Candy Crush Saga, is looking to raise as much as $533m (£321m) via a share sale on the New York Stock Exchange.
Three police officers will find out next month if they are to stand trial for perverting the course of justice.
With the doors to its brand new £1million training centre officially open, one of the UK's leading apprentice training providers, Bristol based S&B Automotive Academy, is showcasing its world-class facilities by launching a series of foreign student exchanges for the first time in its 41-year history. To get a flavour of what life is like as an apprentice in the UK, the Academy hosted 16 apprentice engineers and bus drivers from the G9 Automotive College in Hamburg, Germany, as part of a Europe-wide vocational training initiative called the ‘Leonardo Programme’ with support from the European Social Fund. In a reciprocal arrangement, S&B will be sending nine apprentices to Germany during February 2012 so that they can get an appreciation of life in the automotive industry on the Continent. A further three German exchange groups are being planned for next year. Designed to assist the development of vocational skills and training across Europe, including work placements for trainees, the Leonardo Programme has a budget of €1.75bn, which is helping to encourage UK organisations to work with their counterparts abroad. In what is expected to be another challenging year for employers in the UK automotive sector, S&B’s Chief Executive, Jon Winter, claims that the exchange initiative will bring many benefits to the Academy and its apprentices: “In a world of global automotive brands, it’s important for our learners to understand the international context of the industry they have chosen to make their career. This new exchange programme will enable apprentices and Academy staff alike to achieve a better understanding of the challenges and opportunities within the automotive arena in Europe. With the Academy’s influence also extending to the USA and Asia, there’s every possibility that this initiative could move further afield in the future.” Continued Winter: “The need for skilled technicians across the world is on the increase and we actively encourage our apprentices to look at broader horizons during their training. Many of them have already learned the phrase ‘Vorsprung durch Gelehrtheit’, quite simply, ‘Advancement through learning.” In the 2010/11 academic year, S&B doubled the number of successful Apprenticeships over the previous year with some 350 apprentices graduating from the Academy. At the same time, achievement levels reached an all-time high with an overall success rate of 85%. For those learners on the Advanced Apprenticeship three-year programme, success rates were even higher, at over 98%. PHOTO CAPTION: As part of their exchange visit, S&B Automotive Academy arranged for the German apprentices to visit Hampshire bus operator, Bluestar, at its Barton Park depot. The students are pictured with S&B’s Andy West (3rd right) and Steve Prewett, Bluestar’s Area Engineering Manager (2nd right). Ends http://www.sandbaa.com
Billionaire investor George Soros has said he does not think it would be possible for an independent Scotland to keep the pound.
David Cameron has accused Labour of making "no sense whatsoever" on Europe, after leader Ed Miliband said it was "unlikely" his party would hold a referendum on staying in the EU.
Two girls have been bailed on suspicion of possessing a prohibited weapon after an alleged attack on a pupil at a south London school.