By Ben Richardson Reporting from the Advancing Enterprise conference

Jean-Claude Trichet wants to see faster economic reform

Jean-Claude Trichet, president of the European Central Bank, says the best way for the region to ensure growth is to continue reforming labour and financial markets.

Mr Trichet was speaking at a high profile conference on entrepreneurship in London.

Attended by the great and the good of global industry, the event at the Queen Elizabeth II Conference Centre - a stone's throw from the Houses of Parliament - took place amid tight security.

As blacked out chauffeur-driven Jaguar and Mercedes Benz wisked business leaders including Microsoft boss Bill Gates to and from the event - Advancing Enterprise: Britain in a Gobal Economy - Mr Trichet's call for continuing reform was echoed by finance ministers from Germany, Spain, the Netherlands and Ireland.

And while their messages was more of guarded optimism, they warned of the dangers of complacency and inertia.

It was vital, they said, that difficult and often unpopular reforms were pushed through, or the recent economic recovery would peter out.

The problems facing Europe were many, but governments should focus on simplifying and limiting taxes, reducing unemployment , especially among the young and women, and ensuring labour markets are more flexible, the ministers said.

Euro call

They should encourage people to work past current retirement age, promote entrepreneurship, and create an environment where small businesses thrive.

In addition, boosting cross-border trade, improving education and getting rid of red-tape were identified as key areas for change.

In what might be seen as a hurry up call to the UK and other euro-sceptics, Mr Trichet also said that the European Union was not completed as long as three members were not part of the single currency.

Looking like he had just gone five rounds in a boxing ring, Mr Trichet with a bandaged nose and bruised eyes, said that the single market was "not yet fully achieved".

The respected central banker also reiterated that the ECB supported the decision of the European Commission to seek "legal clarity" over the decision by finance ministers not to sanction France and Germany for repeatedly breaking spending limits.

Fiscal reform

While he did concede that there was room to improve the much criticised Stability and Growth Pact, Mr Trichet avowed support for the agreement.

The ECB "does not see the need for changes," he said, adding, however, that there were problems which needed addressing.

"In particular as regards the analysis of structural balances and strengthening the incentives for sound fiscal policies in good times," he said.

"Clarity and enforceability of the fiscal framework should also be enhanced".

While the speed with which reforms will be carried out on a national level is uncertain, it seems as if the EU will try to move ahead as quickly as possible.

Speedy reforms

Charlie McCreevy, Ireland's minister of finance, confirmed as much when he addressed the conference by video link from Brussels.

He said that the Irish would use their six-month presidency to table legislation that would focus on sustainable growth and job creation.

All that remains now, the ministers said, is to convince the voters that they are headed in the right direction.

Hans Eichel, Germany's finance minister, said that a special onus fell on his country as it was Europe's biggest economy.