The European Central Bank

Date: 17/06/1999

predicted this week that economic growth in the euro zone would increase this year and next, but attacked governments for failing to do enough to reform their labour and fiscal policies. The ECB said monetary conditions were now ripe for strong and sustainable growth, but it was up to governments to play their part by restructuring labour markets and getting their budgets closer to balance. “Unless there is decisive action by member states to increase labour flexibility, the outlook for sustained further reductions in unemployment for the euro area remain bleak,” said the bank in its monthly report.