Draghi urges eurozone governments to fix economies

Associated Press

FRANKFURT, Germany (AP) — European Central Bank head Mario Draghi says the struggling eurozone should leave recession later this year — provided European leaders keep working on economic reforms.

Draghi said Thursday at a news conference that some indicators "have broadly stabilized" although at low levels. He said that later this year "economic activity should gradually recover."

He warned that "downside risk" to the economy of the 17 European Union countries that use the euro came from "slow implementation of structural reforms in the euro area."

The bank is urging indebted governments to take steps to overhaul labor regulations and improve growth.

The bank left its key interest rate unchanged at 0.75 percent, a record low.

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