* Euro zone econ growth flat q/q, up 0.7 pct y/y
* Economices core countries contract
* ECB, policymakers warn govts of lack of reforms
BRUSSELS, Sept 5 Falling investment and a drop
in inventories kept euro zone gross domestic product flat in the
second quarter against the previous three months despite growing
household consumption and a positive contribution from trade,
data showed on Friday.
The European Union's Statistics Office confirmed its earlier
estimate that the output of the 18 countries using the euro was
unchanged in the April-June period quarter-on-quarter, although
it rose 0.7 percent year-on-year.
Eurostat data showed a drop in inventories subtracted 0.2
percentage points from the overall result in the second quarter,
offsetting a 0.2 point positive contribution from household
Falling investment subtracted 0.1 point, offseting a
positive contribution from next trade of the same size.
Investment has been weakening since the last quarter of 2013
and many top EU policy-makers believe it is the main instrument
that could help revive growth since interest rates are already
at record lows and many governments need to continue to
consolidate bloated public finances.
Poland's finance minister called on Thursday for the
creation of a European Fund for Investments that would be able
to finance, through leveraging its own capital, 700 billion
euros ($906.4 billion) worth of investment, to revive the
Germany, the euro zone's biggest economy, cautioned on
Monday that too many EU countries believed public investment
could solve the growth problem, pointing to the need of
mobilising privet funds as well.
(Reporting By Jan Strupczewski)