By Judith Ugwumadu | 8 September 2014

Europe must respect its own rules and avoid everything that distracts from implementing economic reforms, outgoing European Commission president José Manuel Barroso has urged. 

In a speech delivered at the weekend, Barroso said ‘much of the ground work’ had been done since the financial and economic crisis erupted, but ‘we are not yet where we want to be in terms of growth and in terms of jobs’.

He said the economy was the ‘most important problem we have in Europe’, in particular the dramatic problem of very high levels of unemployment.

‘So I think we have to show resilience, stick with the reform agenda and demonstrate courage and patience in seeing through what we have begun. Let me tell you very clearly, I believe much of the ground work has been done.

‘We have to avoid everything that distracts attention from the need of reform. The rules of the Stability and Growth Pact have to be respected 100%. This is in the treaty. The worst thing we could do now is to appear that we are not respecting our own rules.   

‘So my concrete answer to you is structural reform. Let’s make it.’

Meanwhile, the European Central Bank last week responded to the euro area deflationary threats and cut interest rates further in an attempt to boost domestic demand.

The main policy interest rate has been cut by 10 points to 0.05%.

ECB president Mario Draghi also admitted to discussing the introduction of quantitative easing, to boost the demand for both equities and bonds.