ECB chief sees euro performing better this year

The euro will perform better this year, the chief of the European Central Bank said on Thursday, noting that, while the eurozone is showing signs of economic stabilisation, downward risks linger. "I am confident that the euro will be in a better shape in 2012," Mario Draghi told reporters after a meeting between European and Gulf central bankers in Abu Dhabi.
He said he was confident because of the "progress that has been achieved on the two root-causes of the present situation, namely the lack of fiscal discipline and the lack of structural reforms." Earlier, he said "we have seen tentative signs of stabilisation of economic activity at a low level" in the eurozone, while adding that "we see a softening business cycle in Europe with a significant downward risk."
Asked about the affect of slashing credit ratings of EU nations by rating agencies, Draghi said reliance on those agencies should be reduced. "Given their reputation and how this reputation has been harmed during the crisis, I think we all ... should learn to live without ratings," he said.
"In other words, producing our own ratings, where the credit rating agencies will continue to issue their ratings but they will certainly be only one of the many inputs that form our final judgement in assessing the credit-worthiness of certain countries," he added.