Brussels, 13/12/2010 (Agence Europe) - “The euro area is recovering from a severe recession, but the build-up of large economic, fiscal and financial imbalances demands a coherent and forward-looking reform agenda” according to a new OECD report (Economic Survey of the Euro Area, December 2010). Moderate recovery is underway thanks to a softening of monetary policy, massive bail-outs of the banking system and a public support policy that have stabilised the financial system and alleviated the contraction in private demand. For 2011 and 2012, the OECD forecasts annual growth of between 1.5% and 2% and recommends the following to consolidate growth: 1) “improving fiscal discipline through reform of euro area budget rules and the creation of national fiscal councils; 2) upgrading financial regulations; and 3) implementing comprehensive labour and product (sic) reforms to boost growth and competitiveness”. The OECD adds: “In the current climate of uncertainty surrounding euro area sovereign debt, implementation of these reforms by European authorities would contribute to restoring stability”. (I.L. trans fl)