MNI POLICY: Eurozone recession still unlikely: ECB Draghi

By David Thomas

     BRUSSELS (MNI) - European Central Bank President Mario Draghi told European

Union leaders Friday that the probability of a eurozone recession remains quite

low, despite protracted economic weakness driven by a significant slowing in

international trade and a pervasive economic uncertainty, EU officials told MNI.

     So far, internal consumption and investment are holding up, despite the

difficult global environment, but a substantial degree of monetary policy

accommodation remains necessary, Draghi said.

     Referring to Brexit, Draghi said that the aggregate consequences of the

UK's upcoming departure from the EU for the euro area's real economy are small,

but that some countries are more exposed than others. Authorities and central

banks are prepared for Brexit, but the private sector has to step up

preparations, Draghi said, according to the sources.

--MNI London Bureau; +44 203 865 3829; email: jason.webb@marketnews.com

[TOPICS: M$X$$$,MT$$$$,M$$EC$]