Eurozone is ‘unsustainable’ warns Mario Draghi

Thursday, May 31, 2012
By Paul Martin

By Louise Armitstead
TelegraphUK
31 May 2012

Mario Draghi said the central bank could not “fill the vacuum” left by member states’ lack of action as it was claimed the zone is on the point of “disintegration”.

Amid escalating talk of a potential bail-out for Spain, the president of the ECB said the central bank was powerless to stop the debt tornado. “It’s not our duty, it’s not in our mandate” to “fill the vacuum left by the lack of action by national governments on the fiscal front,” he said.

Christine Lagarde, the head of the International Monetary Fund, last night denied that an IMF bail-out of Spain was being prepared.

“There is no such plan. We have not received any request to that effect and we are not doing any work in relation to any financial support,” she said, following a meeting with Spain’s deputy prime minister, Soraya Saenz de Santamaria.

Olli Rehn, the EU’s top economic official, called for urgent action to “avoid a disintegration of the eurozone.” The economic affairs commissioner said that politicians had made progress but it had been “uneven and seemingly inefficient.”

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