European Central Bank President Mario Draghi said European Union countries seeking to adopt the euro should take note of the difficulties some of its current members are encountering.
“The recent experiences of some current euro-area members also serve as a cautionary tale to EU members bound by the Treaty to adopt the euro in the future,” Draghi said in a speech in Budapest today.
The economy of the 17-nation bloc fell into recession in the third quarter after a debt crisis that started in Greece three years ago roiled financial markets, pushed five members into seeking bailouts and forcing the ECB into unchartered territory. European leaders are also working on strategies to strengthen institutional foundations to safeguard the euro.
The crisis has “provided us with a major institutional lesson: maximizing the benefits of the single currency requires not only a strong ECB; it also requires additional strong common institutions,” Draghi said.
While “much work remains to be done” in individual countries inside and outside the currency bloc and across Europe, “I have no doubt that this opportunity to continue progress will be seized and that together we will reap the benefits of sustainable economic convergence and lasting regional integration,” Draghi said, adding that progress in addressing the shortcomings is being made.