Europe needs Britain, says ECB president Mario Draghi With the political row over Europe escalating in the UK, Mr Draghi suggested a British exit would be bad for both sides. "What I can say is that Europe needs a more European UK as much as the UK needs a more British Europe," he said in words that echoed German Chancellor Angela Merkel's claim earlier this year that Britain is a vital member of the EU. Speaking at a City of London event, he also called on European countries to redouble efforts to agree the terms of a banking union, insisting it would benefit "all EU members" including the UK. Britain was among those to have raised concerns about proposals this month, while the perceived threat to the City from more centralised regulation has strengthened the eurosceptics" hand. George Osborne warned that plans to extend protection to all depositors - including those above the £85,000 insured limit - could create "perverse incentives" in markets. He also objected to a pre-funded bail-out fund that could cost the UK £12bn. The recommendations were central to an EU-wide resolution scheme that Mr Draghi said was "imperative" to creating a functioning banking union. The scheme would establish a mechanism to rescue or shut down big banks with minimal impact on taxpayers. "Such a mechanism could give markets certainty about the ranking of creditors and the procedures that would be followed in the case of a bank resolution," Mr Draghi said. If we are successful in establishing an effective banking union - as I am convinced we will be - the benefits will be large, not only for euro area countries but for all EU members. He added that, thanks to the ECB's actions, the eurozone "is more stable today than it was a year ago." However, policies to bring Europe closer together are needed, he stressed. The answer to the crisis has not been less Europe but more Europe... The EU and the [euro] are no exceptions. The choice is between adapting them to the new conditions or do nothing and risk their dissolution.