European Central Bank head: Governments must encourage hiring, reduce jobless rate

Markets Associated Press

European Central Bank head Mario Draghi says the bank is ready to do more to boost a shaky recovery in Europe — but warns governments must join in efforts to reduce stubbornly high unemployment.

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Draghi said that "we stand ready to adjust our policy stance further" if needed to help the weak recovery. The bank has cut interest rates, offered cheap loans to banks and is weighing asset purchases to pump more money into the economy.

But the ECB can't do it alone, Draghi said in the text of his speech Friday at the Federal Reserve conference in Jackson Hole, Wyoming.

He said longstanding practices in some euro member countries are keeping unemployment high. He said more freedom to adjust wages or workforces would make companies more willing to hire.