ECBs Papademos calls for action on labour reform

Eurozone countries are at risk of inflation accelerating even as unemployment remains 'disappointingly high' because of labour market inflexibility, European Central Bank vice-president Lucas Papademos said.

Inflation could pick up in the euro zone, the latest ECB research showed, when the unemployment rate was as high as 8 pct of the workforce, Papademos said in an interview with the Financial Times.

'This is surprisingly and disappointingly high,' he said.

His comments suggest that the failu