Draghi Said to Warn EU Rising Global Rates Pose Crisis Risk

Mario Draghi warned European leaders that the combination of rising global interest rates and explosive politics could expose the euro area’s underlying weaknesses, even as he painted an upbeat picture of the region’s recovery.

The European Central Bank president highlighted the votes next year, a slowdown in reforms and some countries’ lack of compliance with budget rules as factors that could threaten the return of conditions reminiscent of the turbulent years from 2010, according to a European Union official familiar with the meeting who asked not to be named because the discussions aren’t public.