Members of the Economic and Monetary Affairs Committee at the European Parliament have been told governments must take bold action to resolve the debt crisis.
The message came from European Central Bank President Mario Draghi who warned indicators for the second quarter of the year point to weakened growth and heightened uncertainty.
“Effective crisis resolution needs bold actions by central banks but it also needs bold action by other policy actors, notably governments. Since finance assistance can only be temporary, the quality of the reforms and their implementation are absolutely essential,” he said.
Draghi stressed that central to any message is that the euro is here to stay.
He kept the door open to further interest rate cuts. “We will have to look at what the situation is, then we will make up our minds in the ECB Governing Council about what next actions we’ll take,” he said.