THE eurozone economy is at risk of slipping into a self-fulfilling loss of growth momentum, European Central Bank (ECB) executive board member Benoit Coeure said late Sunday, underlining the ECB’s readiness to act if needed.

    Coeure pointed to the latest economic indicators and the European Commission’s downward revision of its growth forecasts and called for “forceful and consistent action” on the monetary policy front, but also for fiscal and structural measures.

    “Monetary policy cannot support growth in a long-lasting way. Only an adequate mix of reforms and investment can do it. And it is a matter of urgency,” Coeure said.

    “The ECB is committed to taking additional measures if we face the prospect of inflation being too low for too long.”

    The ECB kept the door open for more action after its November policy meeting, saying it had tasked staff to prepare further measures, should it become clear that its current tools were not enough or if inflation expectation deteriorated.

    A raft of GDP reports are likely to show just why more help may be needed after ECB chief Mario Draghi got his colleagues to sign up to a target for pumping money into the ailing eurozone economy.

    The ECB did not add to its arsenal of measures last week and is expected to wait and see the take-up of a second round of cheap loans being offered to banks in December before considering anything further.

    (SD-Agencies)