Europe’s debt crisis has entered a new phase and policy makers must come up with a “clear” response to stop the contagion that threatens the region’s single currency, said the European Central Bank’s incoming President Mario Draghi.
The European Parliament formally endorsed on Thursday Italy's Mario Draghi to be the next president of the European Central Bank. European Union leaders are expected to give their formal backing to the appointment at a summit allowing Draghi, 63, to take over as head of the bank when Jean-Claude Trichet steps down at the end of October.
German Chancellor Angela Merkel expressed support for Italy’s Mario Draghi as the next president of the European Central Bank, removing the final obstacle to his appointment to Europe’s top monetary post.
France considers Bank of Italy Governor Mario Draghi the leading candidate to succeed Jean-Claude Trichet at the helm of the European Central Bank. However the key decision maker, German Chancellor Angela Merkel, has yet to tip her hand. Merkel’s aides have indicated that Germany, Europe’s biggest economy, no longer insists on a German to succeed Trichet.