Draghi: I will not let eurozone collapse

European Central Bank president Mario Draghi pledged yesterday to do whatever was necessary to protect the eurozone from collapse, sending a strong signal that inflated Spanish and Italian borrowing costs were in his sights.

Fears about the eurozone’s future are intensifying with Spain and Italy facing frenzied pressure on financial markets and Greece holding crunch meetings with its international lenders having failed to keep its repair plans on track, raising fresh questions about its place in the currency bloc.

With the need for urgent action becoming increasingly apparent, the ECB appears to be gearing up to flex its muscles, something Madrid and Rome have been seeking for months.