Next ECB Chief Says Eurozone Needs Integration
The incoming chief of the European Central Bank says the eurozone countries need a "quantum" leap toward economic integration.
Mario Draghi told a conference in Paris on Monday that there are problems with the common currency, including a lack of coordinated fiscal policies.
He said the solution was to push towards more integration. He said he wasn't talking about eurobonds. Instead, he suggested the eurozone should adopt rules that would require more budget discpline. There is already a proposal that would require all eurozone countries to balance their budgets.
In the current debt crisis, the more stable eurozone countries have been forced to bail out weaker ones, raising questions about whether it was wise for them to tie their fates to fragile states without control over how they spend.