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European Central Bank says it NEEDS Britain in the EU or euro could go UNDER

Economy:
European Central Bank says it NEEDS Britain in the EU or euro could go UNDER

THE chief of the European Central Bank has come close to begging Britain to stay in the European Union, saying a Brexit will threaten eurozone recovery.

A Remain vote would be the best for the 28-member bloc, according to boss Mario Draghi, adding a Brexit being a loss to the single market.

The Bank head said Britain also stands to gain from staying in the union.

Speaking at the bank's policy-setting meeting yesterday, he said: "The ECB has a view whereby the UK should remain in the European Union because the European Union will benefit from its permanence, and we believe the UK too will benefit from staying in the european Union. "
The ECB said this month's referendum threatens to undermine the eurozone's financial stability and is a key political risk.
Mr Draghi spoke as the ECB maintained its policy of negative interest rates, which is an attempt to kick-start growth across the sluggish eurozone economy.

However, the policy has inflamed tensions within the bloc, with savers in Germany suffering for even lower returns on cash, which has helped dent the popularity of Angela Merkel's ruling party.
Huge debts in Italy, Spain and Greece are among the reasons it's necessary to keep rates low.
Mr Draghi recently hit back at critical German politicians and said he does not answer to them.
The chief yesterday again urged patience for the policy to lift the eurozone's finances.

It was revealed earlier this week the eurozone is still stuck in deflation - no doubt a worry for the ECB as its policies are directly aimed at increasing inflation.
Mr Draghi said: "Economic recovery is gradually proceeding.
" Additional stimulus is expected from the monetary policy measures still to be implemented and will contribute to further rebalancing the risk to the outlook for growth. "

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03 June 2016, 17:39