MNI: ECB Draghi: Accomod Mopol Opportunity for Struct Reforms

By Christian Vits

     FRANKFURT (MNI) - European Central Bank President Mario Draghi reiterated

his call Wednesday for structural reforms in the euro area.

     "The crisis has confirmed that more flexible economies are more resilient,

especially for countries that are part of a monetary union," Draghi said in a

speech in Frankfurt. "Lessons about how to design and implement reforms so as to

maximise their benefits and minimise their short-term costs should be put into

practice."

     "With monetary policy being accommodative, we now have a window of

opportunity to take these measures," he added.

     To get the best results, broad coordination among countries is needed,

Draghi noted. 

     "Labour market reforms can emphasise more wage adjustment or more

employment adjustment, and countries will only converge in their response to

shocks if they have a broadly similar mix," he said.

     Draghi acknowledged that many countries have successfully introduced

broad-based reforms during the crisis. "But there are still large gains that

could be achieved," added.

--MNI Frankfurt Bureau; +49 69 97782671; email: christian.vits@marketnews.com