The eurozone is "in a
critical phase" with an economy that has lost momentum, where
investment is weak, inflation at record-low levels, and too many
government commitments not acted on, European Central Bank (ECB)
President Mario Draghi said Friday.
That has put the region's credibility at risk, he said.
Eurozone countries must work together again to stave off
recession, just as collective action helped to save the euro
during the crisis of 2011-2012, added Draghi.
It isn't enough to simply hope that the eurozone will
regain its strength, he said.
"Hope is not a strategy".
Draghi met with eurozone leaders at a summit where he urged
them to develop "an urgent strategy" with credible commitments
to reforms and suggested they set a timetable for implementation
by their next meeting in December.
"In 2011-12, we avoided the collapse of the euro with a
common effort, we now have to do it again to avoid falling back
into recession," Draghi said.
According to the text of his slide presentation to eurozone
leaders, Draghi argued that countries sharing the common
currency need a "coherent strategy for a sustainable recovery
and further steps towards a sharing of sovereignty in economic
governance".
After his lunch presentation, German Chancellor Angela
Merkel said that she "appreciates very much the work of Mario
Draghi," adding that he "does a great job for the eurozone".
Merkel said she also appreciated "the independence of the
ECB".
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