President of the European Central Bank vows to do 'whatever it takes to preserve the euro'
Mario Draghi, the president of the European Central Bank, has vowed to do “whatever it takes to preserve the euro” in a speech that cheered world markets today.
Speaking at a high-profile summit in London to promote investment off the back of the Olympics, Mr Draghi argued that the “euro is irreversible” in comments that suggested he was confident that Greece will not leave the single currency. Markets bounced strongly in reaction, as the euro rallied and the FTSE 100 index of the country’s biggest listed companies rose by 1.38 per cent.
Mr Draghi told the conference of nearly 200 chief executives of some of the world’s most powerful companies and cash-laden sovereign wealth funds: “The progress [in the Eurozone] has been extraordinary in the past six months. There has been progress in undertaking deficit control, structural reforms have been remarkable.”
He also said that plans for a European banking regulator will be unveiled in September. Germany demanded the establishment of this body, which would supervise the euro zone’s 25 biggest banks, but it is unlikely to be up-and-running until sometime next year.
Bank of England governor Sir Mervyn King re-iterated his argument that “relying on the taxpayer to bail-out banks is no longer an option”. However, he argued that despite the problems caused by the City that London remained “a natural centre for global banking”.
To highlight the economic advantages that the government hope to make from the games, David Cameron opened the conference, while business secretary Vince Cable and London mayor Boris Johnson also spoke.
Mr Cameron declared that “the global competitive race has never been faster”, promising to stick to the government’s economic plan by keeping national debt under control. He also promised to maintain a marginal interest rate – it is currently at a historic low of 0.5 per cent – and declared that “Britain is back open for business”.
However, the prime minister’s comments come against a backdrop of grim economic data, which shows that the country has been stuck in economic decline for the three quarters in succession. On Wednesday, analysts were shocked when the economy contracted by 0.7 per cent between April and June, as projections had been closer to a 0.2 per cent decline.
This has led to calls from Lord Oakeshott, the Liberal Democrat peer who is a close ally of Mr Cable, for Chancellor George Osborne to quit. Having already admitted that he would “probably” make a fine chancellor, Mr Cable looked to distance himself from suspicions that he wanted Mr Osborne’s job by saying at the fringes of the conference: “He [Mr Osborne] is a good chancellor doing a good job. We work well together – surprisingly to some people.”
Mr Johnson gave a typically ebullient speech, describing the Olympics as “a wonderful global calling card for British engineering and the British construction industries”. He added: “Despite everything, we still have in this city the largest financial services sector in the world. Isn’t that a great thing?”
The mayor also said that there was interest from sovereign wealth funds to back the establishment of a new hub airport in the Thames Estuary.
scienceScientists find the answer to a question that even puzzled Darwin
elephant appealThe first 23 lots in our charity auction have now gone. But there are 22 more still up for grabs
arts + entsThe 'Friends' actor on his new role as campaigner on addiction issues
Geoffrey Macnab: The Wolf of Wall Street's account of white-collar excess is A Rake’s Progress on steroids
scienceThe new development in bio-printing technology could be used in the future to restore lost vision - though years of research still await
architectureThe design collective which has stuck two fingers up at the modernists will call it quits at Venice
... But if you’re one of those poor souls offended by Jennifer Lopez’s choice of leotard, Grace Dent wants you to get a bloody grip
Sun will 'flip upside down' within weeks, says Nasa
Colin Farrell reveals ‘affair’ with Elizabeth Taylor: 'She was my last romantic relationship'
Children evacuated from swimming pool after prosthetic leg mistaken for paedophile
India-US row over escalates over arrest of diplomat Devyani Khobragade in New York
Peter O'Toole: Tales of the late film icon
- 1 Facebook 'self-censorship': study records when you don't post to find more ways to share
- 2 Sun will 'flip upside down' within weeks, says Nasa
- 3 British prisoner Dr Abbas Khan found dead in Syrian jail days before he was due to be handed over to MP George Galloway
- 4 Vitamin pills are a waste of money, offer no health benefits and could be harmful - study
- 5 Children evacuated from swimming pool after prosthetic leg mistaken for paedophile
- < Previous
- Next >
iJobs Money & Business
£44999 - £60001 per annum + Benefits: Pro-Recruitment Group: A Top Tier firm i...
£50000 - £75000 per annum + benefits + bonus: Harrington Starr: Implementation...
£50000 - £65000 per annum + benefits + bonus: Harrington Starr: Project Manage...
Negotiable: Harrington Starr: My client deliver into the Investment Managemen...