Draghi to warn EU leaders reform needed

The head of the European Central Bank is set to tell European leaders in stark terms at a summit next week that they need to reform straggling economies or risk blunting an ambitious monetary offensive to help revive the stagnant eurozone.

As the ECB inches closer to printing money to buy government bonds, Mario Draghi has become increasingly worried about slack reform in France and Italy, which he fears will undermine the long-term boost from so-called quantitative easing (QE).

Next Thursday, Draghi will urge leaders, including French President François Hollande and Italian Prime Minister Matteo Renzi to step up reforms and hold down spending, people familiar with ECB thinking say.