ECB Must Weaken Euro to Aid France and Italy, Ex-BOE’s King Says

Euro-area stagnation poses the largest threat to the global economy and Mario Draghi should weaken the euro to help boost the flagging economies of France and Italy, according to former Bank of England Governor Mervyn King.

“The euro area is the biggest risk because I don’t think the leaders in the euro area actually have a true vision of how to cope with the problem,” King said in an interview yesterday with Bloomberg Television’s Olivia Sterns in Naples, Florida. “Many are trying to put in place structural reforms, but that is not going to be sufficient to generate a recovery. They also need to have macroeconomic stimulus.”