Mario Draghi, president of the European Central Bank, on Thursday said eurozone governments would need to agree on a new fiscal pact if they are to resolve the crisis facing the region and regain credibility in markets.

Adressing the European Parliament in Brussels, Draghi welcomed recent initiatives in the European Union for closer co-ordination and more intensive scrutiny of economic policies, but said many of the changes undertaken by governments were "not yet visible" and did little to