Draghi signals his approval for move towards fiscal union

ECB President Mario Draghi gave an important signal that he approves of the direction being taken by eurozone governments towards a fiscal union and possible eurobonds, creating optimism that the ECB will step in with its massive support.

The final details towards allowing this fiscal union are being sculpted at the moment in preparation for next Friday’s EU summit, preceded by a eurozone summit on Thursday evening.

Markets reacted positively to the signals Mr Draghi gave to the European Parliament in Brussels, while Spain, Italy and France all had successful, if expensive, auctions of sovereign debt.