EU Warns Europe Needs Major Economy Reforms

The European Union's economy chief has warned that the region will stagnate unless governments make major reforms to boost growth.

EU Economy Commissioner Olli Rehn predicts that growth will not top 1.5 percent and the jobless rate will stay close to current highs without reforms over the next five years.

He says governments should make it easier for services businesses -- from hairdressing to telecoms -- to break into other European countries. He is also calling for an overhaul of labor markets to make it easier to move jobs.

That could create 10 million jobs and take unemployment rates down to 3 percent by 2020, he said Tuesday.