Governments should be looking to cut taxes as a fragile euro zone recovery begins to take hold, Mario Draghi, the president of the European Central Bank told an audience at the World Economic Forum.
In a wide-ranging speech, Draghi detailed what European countries should now be looking to achieve as the continent emerges from recession.
"Overall the outlook for structural reforms are by and large positive," he said. "There is now a very diffused awareness of a need to do these reforms. It shows in polls, it shows in votes, it shows also unfortunately in a very high level of unemployment."
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Unemployment in the 18-country euro zone, however, remains stubbornly high at 12.1 percent. While youth unemployment increased in November 2013, according to data released earlier this month, with 3.575 million under-25s without a job in the euro zone.
Draghi called on the euro zone's governments to step up the pace of reforms to help reduce the level of youth unemployment:"There must be something in the labor legislation in countries where youth unemployment is high that discriminates against youth."
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