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The Telegraph – The euro is “irreversible” and not in danger, says Draghi
The euro is “irreversible” and the beleaguered currency union is not in danger of collapsing, according to European Central Bank President Mario Draghi, who also argued that eurozone nations will eventually be bound even closer together. The central bank chief suggested that analysts who have been tracking the mounting sovereign debt crisis in Europe have been too pessimistic in forecasting worst-case scenarios for the currency and had not recognised the political will behind the eurozone. He was bullish on the future of the currency despite the escalating crisis in Spain, where stocks on Friday experienced their biggest one-day drop in two years, dragging other European markets down with them. The yields, or interest rates, on benchmark 10-year Spanish government bonds have also climbed even further beyond the 7pc threshold, which many market-watchers view as unsustainable. Mr Draghi claimed that the currency was “absolutely not” in danger when asked by France’s Le Monde newspaper in an interview. “We see analysts imagining the scenario of a euro zone blow-up,” he said. “They don’t recognise the political capital that our leaders have invested in this union and Europeans’ support. The euro is irreversible.”
Source: Bianco Research
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