ECONOMY

Draghi: EU crisis summit delivered ‘tangible’ results

European Central Bank President Mario Draghi said on Friday he was pleased with steps taken at a summit of EU leaders, including a decision to allow direct recapitalisation of banks, but added that future aid must be tied to strict conditions.

“I am actually quite pleased with the outcome of the European Council. It showed the long-term commitment to the euro by all member states of the euro area,» Draghi told reporters.

“Also it reached tangible results in the shorter term. The waiver of the ESM’s preferred creditor status for Spain is one of these results,» he said.

“The future possibility of using the ESM for direct recapitalisation of the banks, which was something that the ECB had advocated for some time, is also a good result. And we have to keep in mind that all these things, to be credible, should be accompanied by strict conditionality. This is essential.”

[Reuters]