Mario Draghi urges tough line in Brexit negotiations


European Central Bank president Mario Draghi has urged the European Union to take a tough line on the UK in Brexit negotiations.

“It is of utmost importance that the integrity of the single market is respected. Any outcome should ensure that all participants are subject to the same rules,” Draghi told the European Parliament on Monday.

The ECB president warned the impact of Brexit on the euro area depended on the “timing, development and final outcome” of negotiations.

“So far, the euro area economy has been resilient, but due to this uncertainty our baseline scenario remains subject to downside risks.”

He says it was positive that the initial impact of the vote had been contained and strong financial market reactions, such as falling equity prices, had “largely reversed”.

“For further European integration to be feasible and acceptable, trust among its nations and people is essential. To bolster such trust, it is important that agreed rules are respected,” Draghi says.

Draghi also urged national governments to support growth, reduce unemployment and offer protections for the most vulnerable.

He has previously warned governments they need to do more heavy lifting rather than relying on central banks to boost the economy.