Brussels, 09/05/2014 (Agence Europe) - The head of the Eurogroup, Jeroen Dijsselbloem, believes that the euro has come out of the sovereign debt crisis stronger, but euro nations must keep up the reform drive to boost competitiveness.
In a video message on Friday 9 May to celebrate Europe Day, following questions sent in online, Dijsselbloem said that a lot had already been done to reform eurozone economies, but important reforms still need to be made on the labour market, pensions and introducing a genuine single market for energy. He warned that debts have to be paid off.
Inflation. Dijsselbloem said that like the European Central Bank, he did not see any danger of deflation in the eurozone. He said that the low inflation was due to lower energy and food costs and the structural adjustment processes in peripheral countries, adding that the ECB was prepared to take action where necessary to head off any big threats to the eurozone economy. On Wednesday, the ECB announced after a meeting of its Governing Council that it will be taking measures in June to combat the low level of inflation (which has been below the 1% mark since November 2013). Dijsselbloem attended the Governing Council meeting (see EUROPE 11075). (MB)