ECB's Reinesch - euro zone picking up steam; sees no deflation

The euro zone economy is picking up slowly and there is no risk at the moment of deflation gripping the bloc, European Central Bank policymaker Gaston Reinesch said in a newspaper interview released on Tuesday.

Reinesch, head of Luxembourg's central bank and a member of the ECB's policymaking Governing Council, said the ECB stood ready to act and would employ the appropriate monetary policy instrument should it need to.

"Should deflation risks arise, of course we must use the appropriate measures. However, at the moment I do not see such a risk," he told German business daily Boersen-Zeitung.

"The economic recovery in the euro area appears to be slowly gaining momentum," he added. "We will continue to assume our responsibilities and if necessary take the right tool out of the box to counter a given problem."

(Writing by Paul Carrel)