"Many of the reforms have not yet been completed and the situation on the market can change quickly if investors suddenly see that some important reform elements were not and cannot be realised," he told Russia-24 television in an interview dubbed into Russian and aired on Friday.
"I am sure that the government recognises (the risks). Reform of the labour market must start, and in the nearest future. The restructuring of the banking sector must move as fast as possible, which is in fact happening ... And of course plans for cutting the budget deficit must be fulfilled."
Gonzalez-Paramo said the link between salaries and productivity was too weak, while trade unions were too powerful.
Gonzalez-Paramo also reiterated his statement earlier this week that the European Central Bank remains concerned about inflation. He again refrained from forecasting whether this month's interest rate hike will be followed by further tightening in the near future.
"We still evaluate the risks to price stability as elevated, monetary policy remains very soft but what that means for rates will become clear later -- decisions are taken each month."