EUROPEAN Central Bank boss Mario Draghi yesterday told Eurozone governments he could not solve their problems alone, and could only buy time for them to reform their inefficient and uncompetitive economies.
Speaking just days after Italian anti-austerity parties gained most votes in the election, Draghi insisted governments need to work hard.
“We cannot repair unsound budgets. We cannot clean up struggling banks. We cannot solve deep-rooted problems in the structure of Europe’s economies,” he said. “Our monetary union was deliberately constructed so that these policies would be the preserve of elected governments in each member state.”
Italy’s Prime Minister Mario Monti enjoyed the confidence of markets, convincing them he had a credible plan for reforming the economy. But he performed poorly in the elections, worrying markets that control over state spending may loosen in the near future.