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Wednesday 22 November 2017

Draghi positive on Europe

Euro crisis not over yet, warns ECB chief

ECB president Mario Draghi has indicated there are tentative signs that the economy in Europe is slowly stabilising.

Mr Draghi said that he was "confident" that "the overall situation for the euro will look much better in 2012," as many eurozone states address their fiscal and structural deficits.

And he said that the money markets are coming back to life but warned that the worst is not yet over.

"We see a softening business cycle in Europe with significant downside risk. We also see some tentative signs... but I have to be quite cautious here... some tentative signs of stabilisation of economic activity at low levels," he said.

Following a number of downgrades from rating agencies over the past few weeks, the region's sovereign debt crisis "can get worse" he warned.

Draghi said the ECB was "reasonably satisfied" with the results of an unprecedented crisis-fighting step that it took last month -- the loan of nearly half a trillion euro of three-year cash to commercial banks.

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