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 14:07:22 in EnglandA body that was discovered in a Surrey town has been identified as a man who was last seen at a hospital accident and emergency department.
At 14:04:24 in SportTorquay United have signed AFC Bournemouth youngster Josh Wakefield on a month's loan.
At 14:01:02 in EnglandA 19-year-old man has pleaded guilty to stealing a van and driving it 50 miles the wrong way up the M11 and A14 in Cambridgeshire.
At 14:00:12 in SportGlasgow has been chosen to host the 2018 European Championships.
At 14:00:10 in SportOlympic and Commonwealth gold medallist Nicola Adams will miss the Women's World Championships in South Korea in November because of a shoulder injury.
At 13:58:39 in PoliticsBritain will not work with Syrian President Bashar al-Assad in the battle against Islamic State (IS) extremists, the foreign secretary has told the BBC.
At 13:58:33 in EnglandWooden barriers have been installed in parts of Savernake Forest to protect "internationally important trees".
At 13:57:40 in ScotlandThe scene of the hanging of Maggie Dickson in 1724 is being painted onto a giant 32ft double-sided canvas in Edinburgh's Grassmarket.
At 13:56:53 in SportJersey-born England international Matt Banahan is on the Bath bench as they meet Jersey in a friendly on Saturday.
At 13:53:45 in SportBrighton & Hove Albion boss Sami Hyypia admits the injury that has sidelined winger Solly March so far this season remains a mystery.
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 22nd Aug 2014]
News In Other Categories
US researchers say they have been able to hack into Gmail accounts with a 92% success rate by exploiting a weakness in smartphone memory.
Allowing sectors of the UK TV industry to be bought up by US media companies poses a risk to the UK's tradition of innovation and risk-taking, the head of Channel 4 has suggested.
The leader of Swansea council has been told to expect a challenge to his leadership after sacking two cabinet members in a reshuffle.
Britain will not work with Syrian President Bashar al-Assad in the battle against Islamic State (IS) extremists, the foreign secretary has told the BBC.
Hundreds - possibly thousands - of students across the UK are falling victim to an expensive mobile phone scam.
The scene of the hanging of Maggie Dickson in 1724 is being painted onto a giant 32ft double-sided canvas in Edinburgh's Grassmarket.