Europe yet to turn the corner but stabilising: Draghi

 Associated Press   Frankfurt     Last Updated: January 10, 2013  | 21:43 IST

European Central Bank head Mario Draghi says the struggling euro area should start growing again later this year - but warned that the region has yet to reach a turning point in its struggle with recession and too much debt.

Draghi said on Thursday at a news conference that some indicators "have broadly stabilised" although at low levels and financial markets have steadied. He said "economic activity should gradually recover" later this year.

But he said that "to define a turning point you need a lot of things beside financial market stabilisation."

For that, the group of 17 European Union countries that use the euro needs "greater strength in the economy."

The bank is urging indebted governments to take steps to overhaul labor regulations and improve growth.

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