Draghi Says EU Policy Makers Need to Formulate Stance to Prevent Contagion

http://www.bloomberg.com/news/2011-07-13/draghi-says-eu-policy-makers-need-to-formulate-stance-to-prevent-contagion.html?cmpid=

Austerity measures won’t be enough for Italy and other euro-region countries to reduce debt if not accompanied by policies to boost economic growth, Draghi said. The Bank of Italy expects Italian growth to continue to lag behind the euro area average for the next two years, he said. Second-quarter growth did expand at a similar pace as that of the euro region, Draghi said, reversing the trend in the first three month when Italy grew 0.1 percent, a fraction of the 0.8 percent rate for the euro area.

In contrast to many European economies, Italy has the advantage of a solid banking system and a declining jobless rate, Draghi said.