The thoughts of President Mario


ECB President Mario Draghi appearing before Members of the European Parliament today in Brussels



Speaking before the European Parliament's Committee on Economic and Monetary Affairs, the president of the ECB, told the MEP's, "I have no doubt whatever about the strength of the euro, its permanence and its irreversibility."

Well he would say that, wouldn't he? Except that these are hyper-sensitive times when bond market players keep their ears to the ground for any sign of changes in conditions. Earlier in the day an interview with Draghi in the FT ran under the headline: "Draghi warns on eurozone break up."

In the story, the FT quotes the ECB president speculating on the cost to countries that might choose to leave the euro zone (e.g. Greece). A few hours later he was forced to make his declaration that the euro was now and forever.

Draghi disagreed with the FT's spin on their conversation and also warned the parliamentarians about people outside the euro area who constantly engage in "morbid speculation" about the future of the currency. (video here)

He also reiterated that the ECB would not get involved in a massive buy of euro zone countries' sovereign debt. "Losing credibility, especially for your central bank, I don't think it is going to do any good for market confidence or euro area design."