Gradual recovery in second half of 2013: Draghi

European Central Bank President Mario Draghi called on euro zone governments to implement structural reforms on Thursday, warning that the economy should stabilize later in 2013 but that downside risks to growth remained.

The bank left its main refinancing rate unchanged at a record low of 0.75 percent on Thursday, as expected.
"Our monetary policy stance will remain accommodative," Draghi told reporters at a press conference shortly after the decision. "The continued implementations of structural reforms should work their way through the economy," he said. The euro hit a new session high above 1.3050 against the dollar as Draghi spoke.
Draghi sought to reassure investors concerned about the political stalemate in Italy following elections almost two weeks ago. Under Mario Monti's technocrat government the country made progress in implementing economic reforms which calmed investors' nerves. Some now fear that his work could be undone.
"Markets... have now reverted back more or less to what they were before. Markets understand that we live in democracies...You have to consider that much of the fiscal adjustment that Italy went through will continue going on on automatic pilot," Draghi said.