ECB's Draghi says Eurozone recovery is still young and fragile

European Central Bank (ECB) president Mario Draghi has said that the Eurozone economy remains fragile, and that unemployment is far too high.

The central bank chief said that the area has made progress, but this is not yet fully reflected in the cost of borrowing. Now he's pushes for growth with a "stable foundation, saying that the competitveness gap must be closed in order to boost growth.

Speaking in Berlin, Draghi said that given a subdued inflation outlook, key interest rates can be expected to remain at their current levels or lower for an extended period of time.

While the Eurozone has returned to growth, Draghi highlighted that the recovery is young and fragile. He did note that capital is now flowing back to the periphery from the core.

On banking union proposals, Draghi said that a union should help speed up the repair of banks, if as he hopes, there is a strong single resolution mechanism.