European Central Bank President Mario Draghi warned on Thursday of "lasting economic consequences" of years of weak output.
"A too-slow return of output to potential is far from innocuous," Draghi said in a speech on Thursday. "On the contrary, it has lasting economic consequences, since it can ultimately lead to potential being eroded as well."
Every effort needed to be devoted to ensuring that output was returned to potential before subpar growth causes lasting damage, the ECB president said.
"For the ECB, this means that we do not let inflation undershoot our objective for longer than is avoidable given the nature of the shocks we face."