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Draghi Says Bond Spreads ‘Most Important’ Engine for Reforms

European Central Bank President Mario Draghi said bond spreads are the “most potent engine” for government reforms in the euro region.

“They have to undertake the necessary fiscal consolidation, it’s unavoidable,” Draghi said at the World Economic Forum in Switzerland, Davos, today. “There will be a short-term contraction. We have to rebuild trust among the countries of the euro area.”

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