ECB: eurozone on track for recovery

CNC report from Shanghai
Added On June 4, 2013

During an international monetary conference in Shanghai on Monday, the head of the European Central Bank, Mario Draghi, said ambitious policies are needed to steady the eurozone.

SOUNDBITE (ENGLISH): MARIO DRAGHI, European Central Bank President:
"Strengthening financial resilience requires ambitious policy efforts in various areas. Lending to the real economy can only be expected to resume if accommodative monetary policy is accompanied by swift balance sheet repair and determined fiscal and structural reforms."

Analysts say a recovery in the eurozone's economic situation will benefit China in the long run.

Although the debt crisis has led to speculation of a possible break-up of the monetary union, Draghi played down the prospect.

He says the eurozone is becoming a more stable union than it was before because the overall conviction is that it's going to stay.

Draghi says the European Central Bank, or ECB, will continue to support macroeconomic performance by ensuring price stability in the euro area.

Calmer markets have given governments more breathing space to adjust their economic structures and policies.

And last week, the European Commission announced that several countries would have more time to meet deficit targets.

Meanwhile, Draghi urges governments to stick to their reform paths.

He says in order to inspire confidence, policymakers must follow through with their fiscal reform agenda.

And little would be gained from a loosening of fiscal adjustment today if it creates market expectations that additional tightening will become necessary tomorrow.