BERLIN: European Central Bank chief Mario Draghi called on eurozone governments Monday to do more to encourage investment in order to boost competitiveness.
"One way to regain competitiveness quickly is to address... nominal wages," Draghi told an economic conference in Berlin.
"Another, long-term approach is to... achieve higher productivity."
And Draghi continued: "While cost adjustments increase competitiveness only relatively, productivity gains, by increasing trend growth, can be absolute and benefit all countries.
"I do not see competitiveness as a race between euro area countries with winners and losers," he added.
Innovation and investment were the lever to stimulate productivity and governments could help boost this via political incentives, Draghi said.
Restoring competitiveness across the entire euro area was "a key element in improving the current economic situation" in member states, he said.
"My main message is that we have made significant progress on... stabilising the euro area. But there is still work to do to transform this achievement into higher growth and employment," Draghi said.
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