Draghi: States need growth compact now

Countries must persevere in their structural changes and deficit reduction, but they also need a growth compact now and must plan for economic union in the next 10 or 15 years, ECB president Mario Draghi has said.

In a subdued performance in the European Parliament, Mr Draghi said that inflation risks were broadly balanced and expected to be 2% or below next year, prompting an expectation that the ECB may consider another cut to interest rates shortly.

The governing council would use all instruments to counter upside risks to price stability, he added. He also said it was too early for the ECB to consider an exit strategy from its emergency measures, including liquidity for the banks, which should be good news for Ireland.