FXstreet.com (Barcelona) - ECB chief Mario Draghi spoke on the current state of the Eurozone economy in front of the Committee on Economic and Monetary Affairs of the European Parliament on Tuesday. The president suggested that difficult times are still ahead and that euro area leaders should carry on implementing the necessary fiscal reforms in order to protect the economy. He stressed however that we should not lose confidence in the Eurozone.

The ECB head praised austerity efforts in such countries such as Spain, Greece and Portugal, adding that they are essential, although they might be painful.

As far as the bond purchase program is concerned, the Mario Draghi reminded that it has been initiated in order to eliminate the risk of collapse for the Eurozone, warning however that the central bank cannot do the work of national governments. “It's too easy to think that the ECB can replace government action or lack of it, [by] printing money … that's not going to happen,” Mario Draghi said.

ECB president commented on the tasks of the European Systemic Risk Board (of which he is also the chair), which delivers macroprudential perspective and which should reassure investors about the quality of bank assets. This would help rebuild confidence in the financial system.

The ECB head also said that he welcomes the project of the Single Supervisory Mechanism, which would be open to non-EU members and should not pose a problem for internal market policies.