Europe urged to keep up reforms

EUROPEAN governments should use the current period of calm on financial markets to further economic reforms, a top European Central Bank (ECB) official said yesterday.

Jose Manuel Gonzalez-Paramo told an audience in Spain that the current stability will not last “if it serves as a pretext for national governments to relax their efforts”.

They should “redouble their efforts and deepen the reforms needed in labour markets and budgets,” he said, arguing that the ECB’s intervention can only give breathing space to make reforms, rather than solve the crisis.