, Columnist
Europe Simply Doesn’t Have What It Takes
Draghi correctly identifies the problem, but the eurozone’s competitivity crisis has too many moving parts for a straightforward fix.
Money won’t make the difference.
Photographer: Simon Wohlfahrt/BloombergThis article is for subscribers only.
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Mario Draghi, a former prime minister of Italy, is best known for his promise 12 years ago as president of the European Central Bank to “do whatever it takes” to save the euro. He had considerable freedom of action and his words worked. The eurozone’s sovereign debt crisis swiftly abated. The cost, arguably, was years of sluggish growth as the ECB provided the liquidity to ease the continent to survive severe austerity.