European Central Bank President Mario Draghi said an exit by Greece from the euro zone and introducing its own devalued currency wouldn’t improve the situation in the country, Bild reported today, citing Draghi.
The need for reforms wouldn’t decrease and an exit would also result in high inflation and instability while for an incalculable period of time, no one would lend Greece money, Draghi said, according to the newspaper. A loss of wealth is inevitable if Greece is to improve its competitiveness, he also told the newspaper.
Draghi objects to a transfer union within the euro-zone, in which “one or two countries pay, the rest spend and all is financed with joint euro bonds,” Bild cited him as saying. It’s too early for joint euro bonds and the new fiscal pact between euro members is therefore correct, Draghi told the newspaper.