Draghi Exposes Himself as Empire Agent, Once Again

May 28, 2013 • 10:47AM

During his trip to Britain last week, ECB President Mario Draghi gave a speech at the City of London Corporation on May 23, in which he endorsed more Brutishness in European politics, saying:        

"I have always been deeply impressed by the sense of commitment that motivates distinguished City of London professionals such as yourself to take on the demanding role of your office.  No doubt this sense of responsibility to the community has been instrumental in delivering the longevity and stability of the City of London Corporation.  This institution has played an important role in developing the Square Mile into the premier financial centre of the world.        

"I cannot say which of the two sets of arguments is stronger, the economic or the political ones, but what I can say is that Europe needs a more European U.K. as much as the U.K. needs a more British Europe.  To limit myself to matters that are close to my own professional capacity, let me note a few reminders of the depth of the interconnection:         "* More than twice as many euros are traded in the U.K.'s foreign exchange market than in all the countries of the euro area combined, and more than in the U.S.        

"* All major euro area banks have important branches in the City of London–- and U.K. banks are leading players in financial markets of the euro area.        

"* Around 40% of the deposits placed with euro area banks from outside the euro area come from the U.K.        

"* At the same time, an equally large share, i.e. 40%, of all loans granted by euro area banks to non-euro area residents goes to U.K. borrowers.        

"* In fact, 40% seems to be a key figure when looking at the U.K.'s linkages with the euro area: It is also approximately the share of the euro in all the foreign currency-denominated loans as well as deposits in the U.K.        

"* Finally, the euro area is the U.K.'s largest export market.  It may not come as a surprise to you by now that no less than 40% of all the goods and services exported by U.K. businesses are delivered to euro area countries.  In 2012 this amounted to EU240 billion, or just short of £200 billion.         With such deep interconnections, the U.K. and the euro area share a common interest: stability in the functioning of our economic system and particularly of our financial markets."