PRESIDENT OF THE European Central Bank (ECB), Mario Draghi has said restoring stability in the eurozone does not mean choosing between two extremes.

In an article published in Die Zeit newspaper today,  Draghi said the debate in Europe offers only a choice of either going back to the past or moving to a United States of Europe.

Draghi said this debate is taking place because the eurozone has not yet fully succeeded as a community and currencies depend on the institutions that stand behind them.

“As recent events have shown, this institutional framework left the euro area insufficiently equipped to ensure sound economic policies and effectively manage crises”, he said.

The ECB President said that while a new architecture for the euro area is desirable, monetary union does not necessarily entail a higher degree of joint decision making.

However he said sovereignty in selected economic policy fields can and should be pooled and democratic legitimation deepened. He said:

We do not need a centralisation of all economic policies. Instead, we can answer this question pragmatically; by calmly asking ourselves which are the minimum requirements to complete economic and monetary union. And in doing so, we will find that all the necessary measures are firmly within out reach.

Draghi said it should be agreed that it is neither sustainable nor legitimate for countries to pursue national policies that can cause economic harm to others.

“When markets are fragmented or influenced by irrational fears, our monetary policy signals do not reach citizens evenly across the euro area,” he said.

He added that to fix such blockages and ensure price stability for all eurozone citizens it may require “exceptional measures” but that is the responsibility of the ECB and the euro area as a whole.

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