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Euro Bank Chief Says Eurozone Currently 'Unsustainable'


European Central Bank head Mario Draghi

European Central Bank head Mario Draghi

European Central Bank head Mario Draghi says the economically troubled eurozone is "unsustainable" unless further integration among the countries using the currency is undertaken.

Draghi, speaking to the European Parliament in Brussels, joined calls for a eurozone "banking union" that would comprise a joint deposit guarantee plan, a common bank resolution fund, and "greater centralization of banking supervision" by EU authorities.

Draghi said the debt-crippled Spanish bank Bankia demonstrates the need for such measures.

Currently, most powers to regulate banks have been left with national agencies, not central EU authorities.

Draghi said the European Central Bank cannot "fill the vacuum" left by EU governments which fail to take appropriate action in the fields of structural reforms or governance.

Based on reporting by AP, AFP, dpa, and Reuters
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