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ECB chief Mario Draghi warns of more pain for Eurozone countries

European Central Bank chief Mario Draghi warned MEPs yesterday there was “no indication” that the eurozone’s economic problems were over.

The 18 countries locked into the single currency showed no economic growth at all in the second quarter of the year. 

Massive EU-mandated spending cuts have hit pay packets and thrown millions out of work since the fiscal crash of 2008, miring Europe’s economies in a vicious circle of decline.

But Mr Draghi continued to recommend more of the same, defending a “stimulus programme” offering cheap credit to banks which most economists see as a flop — banks took €82.6 billion (£65.6bn) in total at the first offering on September 18, much less than predicted.

The top banker blamed the EU’s problems on “geopolitical disturbances” — thought to be a reference to the Ukrainian civil war — and on governments failing to deliver “efficiency” reforms to their economies, shorthand for attacks on workers’ pay and conditions.

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