MADRID (Reuters) – European Central Bank policymaker Pablo Hernandez De Cos on Wednesday called for structural reforms and fiscal action by European countries in conjunction with ECB’s measures in order to revive the sluggish economy in the euro zone.
De Cos said that so far monetary policy in the euro zone had been effective in boosting the economy, but this could not be the only tool.
“It is imperative that national and European authorities carry out structural reforms (…) to increase the growth potential of the euro area,” De Cos said.
De Cos said that available data indicated that the economic activity in the euro area remained weak in the third quarter and some countries faced the risk of a recession.
The ECB cut rates deeper into negative territory last week and promised bond purchases with no end-date in a bid to reverse the renewed slowdown in the euro zone’s economy nearly a decade after the bloc’s debt crisis.
(Reporting By Jesús Aguado and Jose Elias Rodríguez; Editing by Andrei Khalip)