Rome: European Central Bank President Mario Draghi called on eurozone members Saturday to summon the political courage and discipline to speed economic and monetary union, warning further "delay could be dangerous."
"Economic and monetary union has brought enduring benefits to all countries that joined it. But it has also had an influence on their economic policy choices, limiting the sovereignty of individual states -- a development that many people only discovered after the explosion of the (financial) crisis," Draghi said in a statement read in his absence to a conference in Rome.
The result has been renewed resistance to structural reform and financial discipline, he said, and a desire of national governments to return to pre-crisis habit as Europe`s long period of sluggish growth and recession begins to fade.
"The current situation in the euro area demonstrates that this delay could be dangerous," Draghi warned.
"Strong divergences remain in terms of unemployment, growth, and productivity," Draghi said, adding that rather than fearing losing power and policy-making flexibility in accepting common eurozone strictures, national governments must realise "new sovereignty-sharing (which)... can appear to be a threat is actually an opportunity."
"The next step towards authentic economic and monetary union will consist of becoming aware of these constraints and taking control of them."
Draghi acknowledged that several post-crisis integration initiatives -- such as the EU banking union -- have been positive, but that many others have stalled.
"The banking union represents an important step, but it must be taken to its term. Now we must achieve a complete union of capital markets," he said. "Financial integration must take a qualitative leap."
Draghi added that while he understood the effort to continue integrating eurozone economies would always be a work in progress, he said members had more to gain through greater union than retaining their differences.
"Europe will always be an evolving reality, advancing on the idea that we Europeans are stronger if we act together," he said.
