Paul Carrel: Draghi faces a daunting 2013
WITH two short sentences, the head of the European Central Bank took the heat out of the euro zone crisis this year. In 2013 Mario Draghi has to live up to even bigger expectations.
The ECB's own forecasts suggest the euro zone economy will shrink 0.3 percent next year and markets remain sceptical that the bloc's weaker members, such as Spain and Italy, can fund ballooning government deficits without formal aid programmes.
Progress towards closer economic and fiscal union -- deemed essential by policymakers to solve the euro zone crisis -- is likely to be painfully slow in 2013 because two of the bloc's top three economies, Germany and Italy, hold elections.