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No impact on euro zone from Ukraine crisis but potential for trouble is great: Draught

FRANKFURT (Reuters) - European Commission President Mario Draghi said on Thursday that from a purely financial standpoint the crisis in Ukraine should not have much impact on the euro zone. But he added that there was potential for far greater instability spreading from the nearby region if the situation escalates.

Draghi pushes for bank resolution fund to be operational quicker

European Central Bank chief Mario Draghi called Wednesday for a new bank resolution fund to be brought into full operation quicker as debate intensifies over the key element of a new banking union. Eurozone states agreed last December on the outlines of the second element of the new banking union, a so-called single resolution mechanism (SRM) to wind up failing banks.

ECB's Draghi says keeping eye on emerging markets

FRANKFURT (Reuters) - The European Central Bank is keeping an eye on risks stemming from volatility in emerging markets, which has yet to spill over into the euro zone economy, ECB President Mario Draghi said on Thursday. Sharp currency falls and weaker demand in emerging markets risks adding to downward inflation pressures in the euro zone, which has a larger exposure to those markets than the United States and Japan.

ECB's Draghi cautions against undue optimism

FRANKFURT (Reuters) - European Central Bank President Mario Draghi cautioned Wednesday against undue optimism for the euro zone economy, saying there still were significant risks of setbacks to the recovery. Draghi said in an interview with the Swiss daily Neue Zuercher Zeitung that he is not too concerned about either inflation or deflation. "We do see encouraging signals and the first signs of an economic recovery in the euro zone, but it is still weak and uneven," Draghi said.

Euro strength played no role in rate cut decision

The euro's recent strength was not a factor that persuaded the European Central Bank to cut its key interest rates Thursday, ECB chief Mario Draghi said. "The exchange rate is not a policy target, but is important for price stability," Draghi told a news conference. The euro's strength "played no role in today's decision. I don't think it was even mentioned," he said. spm/dlc/arp

Draghi wants European banks backstop in place by 2015

By Eva Taylor FRANKFURT (Reuters) - A common resolution mechanism for dealing with troubled banks is a crucial part of the euro zone's banking union and the European Central Bank wants it in place by 2015, ECB President Mario Draghi told Reuters on Wednesday. Wary of a lopsided banking union that could see it supervise euro zone banks without a common backstop in place, the ECB has urged governments to agree on a strong single resolution mechanism (SRM) to salvage or wind down banks in trouble.

US-France tax fraud pact falls victim to shutdown

The US government shutdown claimed another victim Thursday, at least for now: a US-French agreement that battles tax evasion. France was ready to sign the pact providing for information exchange on the offshore financial accounts of US citizens, but the shutdown caused by a budget impasse would not allow it to go forward, French Finance Minister Pierre Moscovici said.

ECB's Draghi says long U.S. debt standoff could cause damage

NEW YORK (Reuters) - European Central Bank President Mario Draghi said on Thursday that a prolonged U.S. debt standoff could hurt the global economy. A debt impasse lasting for weeks or even months could cause "severe damage" to the U.S. and global economies, said Draghi, speaking before the Economic Club of New York ahead of attending the weekend meetings of the International Monetary Fund and World Bank in Washington.

ECB's Draghi: US expected to resolve budget impasse

The world believes US political leaders will resolve their differences on the budget and avert the catastrophe of a debt default, the head of the European Central Bank said Thursday. "There's this belief that an agreement will be found," Mario Draghi told a New York gathering, as Washington powerbrokers sought an agreement to raise the debt ceiling by October 17. ved-jmb/dc

ECB's Draghi says central bank is prepared to offer new round of cheap bank loans 'if needed'

BRUSSELS - European Central Bank President Mario Draghi said Monday that another round of cheap loans could be provided to banks if needed to keep borrowing rates low and support the recovery. Draghi told the European Parliament in Brussels the 17-nation eurozone's economic revival still "needs to be firmly established." To help, the ECB is ready not only to keep its benchmark interest rate low for "an extended period of time" but also to offer a new round of so-called LTRO loans to banks "if needed," Draghi said.
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