2012.07.2303:48:00UTC+00ECB's Draghi Says Euro Not In Danger

The euro is not in danger and "is irrevocable," European Central Bank President Mario Draghi said in an interview to French newspaper Le Monde over the weekend.

Some analysts are imagining scenarios in which there is an explosion of the euro area. "That underestimates the political capital that our leaders have invested in this union, as well as the support of European citizens, he said. "The euro is irrevocable."

Asked if the central bank is ready to act as suggested by the International Monetary Fund, Draghi said the bank is very open. "We do not have any taboos."

The bank will act if there are risks of deflation, he added. Inflation would be close to or below 2 percent at the start of 2013 and there is a possibility that it will fall sooner than expected at the end of 2012, the central banker said.

He noted that the risks of a deterioration in the economy have materialised in part. The situation has gradually worsened, but not to the point of plunging the whole of the Monetary Union into recession, he added.

Regarding the central bank playing a key role in banking supervision, Draghi said monetary policy must be kept separate from banking supervision so that the former is not contaminated by the latter.