Merkel and Draghi urge reforms

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Merkel and Draghi urge reforms

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German Chancellor Angela Merkel and European Central Bank President Mario Draghi have used speeches to the Federation of German Industries to urge eurozone governments to reform to give the financial markets confidence in the region’s future.

Merkel said: “I favour a stronger banking supervision in the eurozone. We are now working in the European Council, on the next steps for more Europe in the sense of more commitments and the possibility to regain credibility.”

Mario Draghi told the sceptical audience: “For the ECB, new steps have been needed to maintain price stability in the face of fragmented markets. They are the only way to ensure that we continue to fulfil our mandate.”

Draghi called the ECB’s bond-buying plans a “bridge” rather than a solution to the crisis and urged eurozone leaders to seize on the improved sentiment generated by the to press ahead with reforms and closer integration.

He spoke as it was reported German central bank lawyers are checking the legality of that plan.