European Central Bank insisted euro is not going to collapse
The president of the European Central Bank (ECB) has insisted the euro is not going to collapse.
Speaking to the Le Monde newspaper, Mario Draghi said the single European currency is not in danger.
He acknowledged that many analysts have been foreseeing the possibility of a "eurozone blow-up".
However, he stressed they are not bearing in mind the political capital that has been invested in the monetary union by its members.
Mr Draghi said this means the euro is "irreversible".
Speaking afterwards, foreign exchange specialist HiFX said this was not enough to inject confidence into the markets, as they are still waiting for action to be taken to safeguard Spain.
"The widely anticipated decision to restart the purchase of government bonds under the Securities Markets Programme would have been pivotal," said director Jason Gaywood.
Indeed, he said this would have represented a "rescue for Spain from exploding borrowing costs", as well as a "newfound willingness to alienate the previously untouchable Germany" for the benefit of the eurozone as a whole.
Mr Gaywood noted that Germany has long been against such a move and believes the ECB's constitution bars it from acting in this way.
This, he said, means the markets will believe the ECB still wants to "placate the Bundesbank".
Mr Gaywood added that Germany is the financial institution's "biggest funder" and the "powerhouse of Europe", which means upsetting it is not an appealing option.
Nevertheless, he said the ECB appears to have recognised the gravity of the situation in Europe and seems to genuinely have the desire to safeguard the euro.
This comes shortly after Mr Draghi insisted the ECB is "ready to do whatever it takes to preserve the euro" and that this would be enough to safeguard the currency. He also noted the euro is in a "much, much stronger" position than many people readily acknowledge.