Draghi stands firm on Greek default

Mario Draghi has strongly defended the tough stance against a Greek debt restructuring taken by the European Central Bank, which he hopes to head from November, and says Athens’ economic challenges are not as great as those faced by his native Italy in the 1990s.

Giving evidence to the European parliament in support of his appointment, Mr Draghi stuck closely to the position set out by Jean-Claude Trichet, the ECB’s incumbent president, demanding that politicians excluded plans for involving private investors in a fresh bail-out for Greece that included any element of compulsion.