The European Central Bank (ECB) warned euro-zone governments today to get finances in order and restructure their economies if they wanted to see a lasting improvement in growth and employment in the region.
The ECB argued in its January monthly report it was doing its bit by bringing inflation down in the 12 countries which share the single currency.
"It was now up to governments to play their part by consolidating public budgets and reforming their labour and product markets," the central bank said.
"In order to maintain favourable prospects for non-inflationary growth in the euro area, it is important that fiscal policies maintain a medium-term orientation consistent with the stability and growth pact," the ECB said.
"The current weakness in economic growth undoubtedly poses a particular challenge for those countries which have not yet attained budgetary positions close to balance or in surplus.
"However, rather than hindering a return to sustainable economic growth, the adherence of fiscal policies to their medium-term objectives will strengthen consumer and investor confidence," the report said.
The ECB was not naming any names, but Germany, the euro zone's biggest economy, is having trouble getting its finances in order.
On Tuesday, Minister for Finance Mr McCreevy called on the EU to consider the impact on the euro when deciding whether to reprimand Germany over its high-budget deficit.
The EU Commission is due decide next week whether to recommend an "early warning" to Germany over its deficit.
AFP