MNI BRIEF: Draghi: EU Escape Clauses Can Only Go So Far

Former ECB President Mario Draghi said Monday that flexible fiscal rules will not be enough to finance the necessary increase in Europe's defence spending and reiterates his call for common EU debt issuance to fill the gap. 

Draghi notes that several countries will not be taking advantage of national escape clauses in order to boost their defence spending, adding that that more common EU debt would help support demand and ensure more defence spending takes place in Europe and so boosts economic growth. 

He struck a pessimistic note on the EU's chances of striking an adequate trade deal with the US, although continued access to the US market will be essential in the short term.