Eurozone must leave its ‘fairy world’: Draghi

The eurozone’s crisis is far from over and member states must tighten budgets and forge a banking union to leave behind the “fairy world” that allowed problems to grow, said ECB president Mario Draghi.

Draghi’s call for reform was echoed by IMF chief Christine Lagarde, who said implementing a banking union with powers to supervise all banks in the eurozone should be the currency bloc’s top priority.

Speaking in Paris, where the government is trying to dispel concerns raised by the IMF that France could be left behind as Italy and Spain reform at a faster pace, Draghi said the eurozone’s debt troubles were likely to stretch deep into next year.