ECB's Draghi warns that fiscal consolidation is unavoidable

European Central Bank president Mario Draghi has warned that fiscal consolidation is "unavoidable" for several Eurozone members. However, Draghi said that this consolidation must be "growth friendly".

The central banker argued that if consolidation were to be unravelled that it would result in much higher deficit to GDP ratios a year from now. This would then see borrowing rates go up for everyone, further depressing economic activity in these countries.