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Davos: The Year of the Draghi

Wednesday, January 25, 2012 - 02:02

Jan. 25 - European Central Bank President Mario Draghi has emerged as one of the most significant players at this week's World Economic Forum in Davos. Jamie McGeever reports from Davos.

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If 2012 is China's Year of the Dragon, for Europe, it may be The Year of the Draghi. European Central Bank president Mario Draghi has received plaudits for the steps he's taken to fix the banking crisis. Some tangible signs of recovery may already be emerging. SOUNDBITE: MARIO DRAGHI, EUROPEAN CENTRAL BANK PRESIDENT, SPEAKING ON JANUARY 19 2012, SAYING (English) : "In the last few months we have observed indeed a fantastic progress, in improving the fundamentals in many countries, in taking care of the fiscal consolidation in starting to address structural reforms so that I would say the merit of the credit of these countries which have gone down now is going up, now it's improving and the overall situation of the euro will look much better in 2012." REPORTER PTC: JAMIE MCGEEVER, REUTERS CORRESPONDENT, DAVOS, SWITZERLAND: "Draghi will be here in Davos. He won't be talking to me though, in fact he's not talking to any press at all. And that is telling. Only a few months into the job, he's letting his actions speak louder than words." Top of that list is offering banks unlimited funds, at cheap rates, for an unprecedented three years. It may not address underlying problems like the risk of sovereign default. But it drastically reduces the prospect of another credit crunch. And this is important. Dennis Nally, chairman of PriceWaterhouseCoopers believes a euro zone recovery is critical to global recovery. (SOUNDBITE) DENNIS NALLY, PRICEWATERHOUSECOOPERS INTERNATIONAL, SAYING (English): "By in large the euro zone has been a significant success, it's allowed countries to really compete in this global economy which is, I think, so important. I'd hate to think of the consequences without the euro zone from an economic standpoint." REPORTER PTC: JAMIE MCGEEVER, REUTERS CORRESPONDENT, DAVOS, SWITZERLAND: "So Europe matters. Hugely. And in Mario Draghi, perhaps the most influential central banker in the world right now, it may have the man to help drag it back up. Otherwise, the Chinese Dragon may lose some of its fire. Which would be bad news for the rest of the world. I'm Jamie McGeever for Reuters."

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Davos: The Year of the Draghi

Wednesday, January 25, 2012 - 02:02