Crisis in Europe is worse

The President of the European Central Bank (ECB), Mario Draghi, warned yesterday that the debt crisis has worsened in recent months and that the situation is "very serious".

In his first appearance before the Committee on economic and Monetary Affairs and monetary of the European Parliament, meeting in Strasbourg (North-East of France), as Chairman of the European Council of systemic risk (CERS), Draghi said the crisis was qualified in October by his predecessor, Jean-Claude Trichet, systemic, but since then has been aggravated.

"The situation has deteriorated more." "We are in a very serious situation and we must not ignore this fact," said Draghi, who urged euro-zone to act quickly and with a good coordination.

Indicated that during the last months of 2011 the uncertainty about the sustainability of certain sovereign debt and the resilience of the financial system, along with gloomy growth prospects, u000athey led to severe alterations in the normal functioning of financial markets, and therefore the economy real.

In order to counteract this trend, politicians have reacted and central banks have acted resolutely, relaxing monetary conditions and, in particular, extending the possible guarantees and the period of the operations of liquidity.

Meanwhile, added, the heads of State and Government of the eurozone have agreed to sign a treaty for a budget deal and better coordinate their economic policies. However, "decisions without the corresponding actions are not enough and they should pay attention to the implementation of the measures in the correct sequence".

First, must regain the trust in the sovereign debt and ensure that the firewall of the EU are equipped with a flexible and effective mandate and operational secured.

Draghi cautioned that commitments adopted by the u000aleaders of the eurozone must be applied quickly and fully, above all in relation to the European Fund for financial stability (EFSF) and the European stability mechanism (COMPRISES).

The extension of the capabilities of the EFSF can facilitate the recapitalization of banks in countries not rescue - two, but only if this anti-crisis package is implemented reliably can continue other efforts, said Draghi.

Second, the eurozone needs clarification about the robustness of the financial system of the EU, he said. He stressed that the proposal of the European banking authority (ABE) to restore confidence in the strength of the Bank through recapitalization must not be implemented at the expense of the adequate flow of loans to the real economy or exacerbate the fragile market points.

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Fund NECESITARÁ more money
the European Fund for financial stability (EFSF) will need more u000amoney, said yesterday the President of the European Central Bank (ECB), Mario Draghi, after announcing the agency Standard and Poor's financial rating one step down the note by the EFSF. "You need new contributions from countries that still retain the note 'AAA'" in order to maintain the capacity of the EFSF and continue with the same interest rates, said Draghi before the Committee on Economic Affairs of the European Parliament.

Are currently four countries of the eurozone with the maximum Note: Holland, Finland, Germany and Luxembourg. Standard and Poor's yesterday dropped a stepping stone to "AA " the note of the European Stability Fund.

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