Draghi: ECB eliminated risk of euro collapse

FXstreet.com (Barcelona) - During a speech delivered on Thursday in London Mario Draghi said that the European Central Bank's actions were crucial for securing the permanence of the euro.

The ECB head told the audience gathered for an event organized by bankers and regulators in the City of London that the measures implemented by the central bank, such as the liquidity injection for banks through the LTRO program, helped to halt the panic in the financial markets, preventing a considerable increase in interest rates which most probably would bring about the collapse of various Eurozone economies.

“Today we are seeing some encouraging signs of tangible improvements in financial conditions” Draghi insisted. Spreads in sovereign and corporate debt markets have narrowed considerably.”

Draghi added that ECB's intervention eliminated the risk of a systemic collapse of the euro and announced that the fiscal consolidation planes and labor reforms implemented by Eurozone governments are starting to bear fruit.