* Coeure says action is needed both on the demand and the
supply side for recovery
* Says ECB to maintain its very accommodative monetary
* Says Greece has turned the corner but more remains to be
done on reforms
ATHENS, Aug 28 Economic recovery in Europe
requires action both on the demand and supply sides and
persistence with structural reforms, European Central Bank
Executive Board member Benoit Coeure said on Thursday.
"What we have been saying, what particularly the ECB
President (Mario Draghi) has been saying last week in Jackson
Hall is that the European economy is at a point where action is
needed both on the demand and the supply side," Coeure told
Greek Skai TV in an interview.
"Action on the supply side is very important. There will be
no recovery if euro area countries do not move on towards
structural reforms," he said.
Coeure said the ECB was committed to maintaining a high
level of liquidity in the European economy.
"The spur of the recovery, the fuel of the recovery will
come from aggregate demand. The ECB is committed to play its
part by maintaining its very accommodative monetary conditions
for an extended period of time," he said.
Coeure met Greek Prime Minister Antonis Samaras, and top
officials including central bank chief Yannis Stournaras during
his visit in Athens, ahead of talks between the government and
its foreign lenders in Paris next month, which will kick off the
country's next bailout review.
Greece's economy is on the cusp of recovery after six years
of recession, expected to grow by 0.6 percent this year.
"Greece has turned the corner," Coeure said adding that a
lot remains to be done on structural reforms.
Asked about Greek banks' capital needs that may be revealed
in the ECB's region-wide stress tests in October, Coeure gave no
clues but said it was positive that banks had already
successfully tapped capital markets.
"We don't know yet whether money will be needed and how
much, and in any case the first line of defence will be
accessing capital markets," he said. "There should be no worry
about it, they have a proven ability to access capital markets."
(Reporting by George Georgiopoulos and Renee Maltezou; Editing
by Susan Fenton)