Mr Draghi starkly dismissed claims leaving the eurozone would offer an easier path to nations whose finance are currently struggling, as argued by illiberal ideologies and nationalists. Speaking at the inauguration of the academic year of one of Italy’s most prestigious university, the Scuola Superiore Sant’Anna in Pisa, Mr Draghi said: “Only by continuing to make progress, freeing up individual energies but also fostering social equity we will save the European Project through our democracies, with a unity of purpose.” Mr Draghi, credited with saving the euro following the financial crisis in 2008, said the European Union was born out of “exceptional circumstances”, World War 2.
“We are rich but little, strategically exposed but weak from a military point of view.”
However Mr Draghi said nowadays Europe is experiencing a fallback.
He said: “The fascination with illiberal prescriptions and regimes is spreading, we are seeing little steps back in history.”
The president of the ECB also spoke about what he believes should be the next steps for members of the eurozone.
During his speech, Mr Draghi called for deeper private risk sharing, the completion of the banking and capital market unions and argued for euro-wide backstops that could help the bloc’s weaker members in case of market stress.
This manoeuvre has so far received the stark opposition of Germany, which fears its taxpayers will have to foot the bill for the fiscal irresponsibility and excesses of weaker euro members.
However, Mr Draghi believes large institutional reforms are the key to safeguard the eurozone.
He said: “Without appropriate backstops at the euro area level, individual countries in a monetary union can be exposed to self-fulfilling dynamics in sovereign debt markets.”
Mr Draghi added the euro is not as rigid as it used to be.
This comes as Italy’s government led by anti-establishment Five Star Movement and populist Lega bowed down to the EU’s pressures on its high-spending budget.
Following months of attacks between Rome and Brussels, Prime Minister Giuseppe Conte said the government will slash its draft budget from 2.4 percent of the GDP to 2.04 percent.
Matteo Salvini, leader of Lega and eurosceptic interior minister, wrote on Facebook after the announcement had been made: “Still working for the Italians, to keep the promises made on jobs, pensions, health and safety, trying to avoid problems with Europe and the markers. I don’t give up!”