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 19:39:42 in EnglandThe family of a man who died, despite seven 999 calls for an ambulance, said he was failed in his "moment of need".
At 19:38:42 in SportNetherlands keeper Michel Vorm believes Louis van Gaal would be the ideal choice as Manchester United manager.
At 19:32:11 in EnglandHeathrow Airport is gearing towards the opening of its new Terminal 2 by unveiling Europe's largest privately funded sculpture.
At 19:27:52 in EnglandThe death of a 10-year-old boy who was hit by a car as he crossed the road outside his house was accidental, an inquest has heard.
At 19:13:07 in PoliticsPrivate parking firms paid more than £6m to the DVLA for the names and addresses of drivers in the past year - an increase of 28%, figures suggest.
At 19:12:17 in EnglandPoppies have been planted as part of a social media campaign to mark the First World War in Jersey.
At 19:11:22 in WalesGriff Rhys Jones has withdrawn from becoming Cardiff University's new chancellor just two weeks after an embarrassing debacle which saw his appointment halted at the last minute.
At 19:04:14 in EnglandA theatre company is hoping to have set a new world record by performing an abridged version of Shakespeare's works at more than 37,000ft (11,278m).
At 18:56:33 in WorldThe Iron Curtain fell 25 years ago, but it seems that nobody told the deer.
At 18:54:46 in EnglandA council is expanding the size of graves to accommodate obese people - and could charge extra for larger people to be buried in them.
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 23rd Apr 2014]
News In Other Categories
Griff Rhys Jones has withdrawn from becoming Cardiff University's new chancellor just two weeks after an embarrassing debacle which saw his appointment halted at the last minute.
Portugal's chances of exiting its three-year bailout programme rose after the sale of 10-year government debt fell sharply to a record low 3.57%.
The family of a man who died, despite seven 999 calls for an ambulance, said he was failed in his "moment of need".
The cost of drugs is in the headlines following the decision by NHS watchdog NICE that a new cancer treatment should not be funded.
Tesco's internet service has been hit by two separate problems that coincided, leaving some of its customers irate.
A foundry has been fined £10,000 for serious safety failings after a worker's legs were crushed by a one-tonne casting mould.