European Central Bank President Mario Draghi warned Friday that a possible exit by Greece from the eurozone would be counterproductive as it would lead to instability and higher inflation, according to dpa. "An exit and the possibility of devaluing its currency wouldn't improve anything," Draghi said in an interview with the German daily Bild. "The pressure to reform would never end," the ECB chief said. "But instead an exit would result in higher inflation and instability - for the foreseeable future no one would lend Greece the necessary money." He said that Greece had already agreed to a string of key reforms, which as long as they were implemented would give the heavily indebted nation "a chance to emerge from the current downward spiral." Draghi also insisted that it was too early to launch eurobonds as a way of shoring up the debt-hit 17-member currency bloc. "The eurozone cannot be turned into a transfer union in which one or two countries pay while the rest spend the money and the whole thing is financed with eurobonds," he said. "This was the reason why the new fiscal pact for the euro states is the right way to go and that's why it would be too early for eurobonds." Germany's tough stance on the need for Athens to press on with often painful reforms has made it a target of protests in Greece. But in his interview, Draghi said: "Without pressure from the markets and the Germans, then many of the advances in various eurozone countries would not have been made."
