Draghi says EU must spell out clear euro vision

BRUSSELS: Europe’s leaders must clarify their vision for the euro quickly or risk disaster as the European Central Bank (ECB) cannot fill the policy vacuum, ECB President Mario Draghi said.

Adding to growing pressure for dramatic policy action at next month’s European Union summit, Draghi said the bloc should err on the side of doing too much rather than too little, breaking away from the incremental approach that has failed to get ahead of the eurozone debt crisis for more than two years.

“Can the ECB fill the vacuum of lack of action by national governments on fiscal growth? The answer is no,” Draghi told the European Parliament. With the debt crisis now centred on Spain’s teetering banking sector, Draghi said a banking union in the region would need to be supervised centrally and require the introduction of a European deposit scheme and a resolution fund. – Reuters