ECB, Draghi: "There is a justified return of confidence in the Eurozone"

For the President of the ECB, the return to confidence is justified by the anti-crisis measures of the European central institute and its government bond purchase program - But Draghi warns: "We are not replacing the Governments, continue the reforms" - On the unified supervision of banks the ECB "will ensure a level playing field".

Market confidence is back in the Eurozone. This was said by the president of the ECB Mario Draghi who, at a conference in Frankfurt, spoke of a cautious, but "justified" return of investor confidence in the euro area, above all in the light of the new tools with which the ECB itself can intervene where necessary, and the reform programs launched by the Governments.

In fact, for Draghi, the European Central Bank's plan for the calming purchases of government bonds is the most credible defense against a possible crisis in the currency union, but, he warns, with these measures the ECB "has not replaced anyone of the tasks incumbent on governments”, which must therefore continue along the path of their reforms.

“The ECB has continued to vigorously defend its autonomy and fully carry out its main institutional task, ensure price stability“. An autonomy, that of the central bank, which becomes all the more important in view of the new role of unified supervision of European banks. In fact, for the members of the ECB who will be responsible for the supervision of banks, the criteria on independence prescribed by the parameters of the agreements on the Basel sector will be applied.

The creation of this unified supervisory system is a fundamental step for Draghi, which will ensure "an equal playing field" for the banks, freeing them from ties at the national level and thus eliminating “a key factor of instability”, thus helping to "prevent the fragmentation of the European market, which is exactly what we are trying to repair".

The president of the ECB then spoke of the difficult situation in countries undergoing recovery: "They are increasingly thought of by the financial markets due to the additional weight they have to bear to support their banks", by virtue of the "vicious circle that has arisen between banks and sovereign debt". For this reason, continues Draghi, "the financial union is a necessary step to improve investor confidence".