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ECB's Praet says reforms needed to make economic recovery last

Peter Praet

Countries in the euro zone need to make structural reforms in order for the current economic recovery to become a lasting one, the European Central Bank's chief economist said on Thursday.

"Though the business cycle is improving, the notable decline in the euro area's potential growth has not been addressed," Peter Praet said in the text of a speech to be delivered at a conference in Berlin.

"The euro area needs a combination of policies for the cyclical recovery we are seeing to become a lasting one: accomodative monetary policy and determined structural reforms need to go hand-in-hand," said Praet, adding that the "euro area economy seems now to be turning the corner".

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