European Central Bank president Mario Draghi urged euro zone leaders at a summit on Friday to make a joint effort combining structural reforms, investment, budget discipline and stimulating demand to avoid "a relapse into recession".

An ECB spokesman reading from Draghi’s speaking points said he insisted that the EU’s budget rules should be credibly upheld to anchor market confidence in the 18-nation currency area, while those countries with a healthy budget position should consider stimulating demand to boost growth.

“In 2011-12, we avoided the collapse of the euro in a joint effort. Now our focus should be again to act jointly on avoiding a relapse into recession,” the central bank chief said.

He urged all euro zone governments to present a national timetable for structural economic reforms by the next EU summit on December 18-19.

The ECB stood ready to use other unconventional measures if needed to achieve its goal of price stability, Draghi said. He voiced concern at the possible effects of prolonged low inflation on wage and price setting but did not use the term “deflation”, the spokesman said.

Reuters