MADRID (MNI) – Markets have yet to completely understand what
European Central Bank President Mario Draghi said at the ECB’s monthly
press conference, Italian Prime Minister Mario Monti said Thursday.

Monti, appearing before the press alongside Spanish Prime Minister
Mariano Rajoy here, said that while he still “can’t say much” about
Draghi’s statements, “I see no step backward in the declarations with
respect to London, I see continuity.”

Markets reacted with disappointment to Draghi’s perceived failure
to live up to strong utterances he had made the previous week in a
speech in London.

However, Monti defended his countryman, “markets have still not
analyzed well all the data” provided today by Draghi.

Both he and Rajoy repeatedly emphasized as “very important” various
remarks made by Draghi, including notably the latter’s assertion
regarding fears of non-irreversibility of the euro, the possible future
intervention on bond markets and the high level of risk premia.

High risk premia are not just the problem of the country most
directly affected, Rajoy observed.

Rajoy, who also called Draghi’s performance “very positive,”
promised that he would “pay close attention” to additional non-standard
measures ultimately taken by the ECB.

Monti dismissed speculation about an Italian bid for financial
assistance, noting that the country’s deficit-to-GDP ratio was
relatively good compared to EMU in general.

“The government is going to continue doing what it has to do in a
rapid, adequate manner,” he said. “Our intention is to work with the
other governments so that Europe has this instrument and others.”

He lauded efforts of “the government and people of Spain to realize
structural reforms,” elaborating that he was “referring in particular to
the reform of the labor market.”

Rajoy and he “are both hoping that the EU very quickly reaches an
agreement about bank supervision,” he reported.

“It is very important to accelerate as much as possible the
different growth initiatives,” he said.

Rajoy noted that Spain could not “continue spending more than [it
is] taking in.”

–Frankfurt bureau tel.: +49-69-720142. Email: dbarwick@marketnews.com

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