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ECB's Coeure presses euro zone governments to reform economies

Published 04/11/2014, 08:11
Updated 04/11/2014, 08:20
© Reuters coEuropean Central Bank board member Coeure attends the Economist Conference on " The big rethink for Europe, the big turning point for Greece" in Athens

NICOSIA (Reuters) - The euro zone risks a loss of economic momentum and a delayed recovery unless governments match the European Central Bank's monetary stimulus with fiscal and structural policies to support growth, ECB policymaker Benoit Coeure said on Tuesday.

Coeure, a member of the ECB's six-member Executive Board that forms the core of the policymaking Governing Council, urged governments to press ahead quickly with the reforms to shape up their economies.

"Unless an adequate mix of monetary, fiscal and structural policies is in place to create confidence and sustain private consumption and investment, we once again run the risk of a self-fulfilling loss of momentum and a delayed recovery," he said.

"From our side, we are fully committed to play our part in this policy mix, which is to fulfil our mandate and bring inflation back towards 2 percent."

The experience of the euro zone crisis and adjustments made in Baltic states had shown that "on the whole, front-loaded reforms yield better results than a more gradual approach," Coeure added in a speech in Nicosia.

© Reuters. coEuropean Central Bank board member Coeure attends the Economist Conference on

Turning to Cyprus, he said there was an urgent need for implementing legislation that speeds up private sector debt restructuring.

(Writing by Paul Carrel; Editing by Andrew Heavens)

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