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(Updates with comments on financial services, stability pact)
BRUSSELS (Thomson Financial) - European Central Bank president Jean-Claude Trichet said recent economic developments in the euro zone are "very encouraging" but warned that the bloc has no scope for complacency.
The euro zone has to implement further structural reforms if it is to reap the benefits of its single currency and to build on the current economic recovery, Trichet said in a speech here.
Such reforms would boost euro zone GDP by 0.5 pct as well as help the upturn broaden and become more durable, he said.
Trichet singled out the labour market as in particular need of an overhaul.
He also called for the "full integration" of the EU's measures to create a single market for financial services, saying the lack of progress to date has constrained the economic development in some sectors.
Financial integration would be one way of cushioning Europe from any future economic shocks, he said.
On fiscal policy, Trichet said it is "absolutely essential" euro zone countries to respect the stability and growth pact setting a deficit limit of 3 pct of GDP.
New French budget Eric Woerth called, shortly after his appointment last month, for a "pause" in France's deficit-reduction programme.
(Updates with comments on financial services, stability pact)
BRUSSELS (Thomson Financial) - European Central Bank president Jean-Claude Trichet said recent economic developments in the euro zone are "very encouraging" but warned that the bloc has no scope for complacency.
The euro zone has to implement further structural reforms if it is to reap the benefits of its single currency and to build on the current economic recovery, Trichet said in a speech here.
Such reforms would boost euro zone GDP by 0.5 pct as well as help the upturn broaden and become more durable, he said.
Trichet singled out the labour market as in particular need of an overhaul.
He also called for the "full integration" of the EU's measures to create a single market for financial services, saying the lack of progress to date has constrained the economic development in some sectors.
Financial integration would be one way of cushioning Europe from any future economic shocks, he said.
On fiscal policy, Trichet said it is "absolutely essential" euro zone countries to respect the stability and growth pact setting a deficit limit of 3 pct of GDP.
New French budget Eric Woerth called, shortly after his appointment last month, for a "pause" in France's deficit-reduction programme.
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