The president of the European Central Bank (ECB) has expressed confidence in the euro zone's economic recovery and urged European consumers to spend more. Denis Staunton reports from Brussels

Mr Jean-Claude Trichet told the European Parliament's Economic and Monetary Affairs Committee in Brussels that it was beyond doubt that the economic recovery began in the second half of 2003.

"I know the European households are vigilant, which is good. I encourage them also to be confident: their purchasing power will be protected in the years to come, thanks in particular to the vigilance of the governing council of the ECB.

"From that standpoint, perhaps it is time to be more confident, and for households to consume and to invest more, which in turn would be good for growth and job creation," he said.

Mr Trichet's remarks came as six European prime ministers wrote to the Taoiseach, Mr Ahern, urging him to use a meeting of EU leaders next month to reinvigorate the Lisbon agenda of economic reforms, which aims to make Europe more competitive. The prime ministers of Italy, Spain, the Netherlands, Portugal, Poland and Estonia said that the EU must do more to encourage job creation, boost research and development, and ensure that new regulations do not impede industry's competitiveness.

"The European Union needs to develop fully its economic potential. We must make the most of the opportunities offered to us, and show our commitment to the objectives we have all agreed: sound public finances, sustained growth, full employment and preservation of the environment," the six leaders said.

The prime ministers said that Europe's economic recovery must be based on a culture of stability and expressed support for the EU's budget rules, which have come under pressure following last November's decision to suspend them for France and Germany.

"The Stability and Growth Pact is an essential element of economic governance in our Economic and Monetary Union and a necessary condition to sustained economic growth that we all pursue, and its rules must be applied consistently and in a non-discriminatory basis.

"Sound policies are vital also in the longer run when we will find ourselves challenged by the impact on both the economy and public finances of the ageing population," the leaders added.

Mr Trichet also expressed support for the Stability and Growth Pact yesterday, insisting that its rules must not be changed, even if their implementation could be made more flexible.

He declined to be drawn on the possibility of an ECB intervention in the currency markets to halt the euro's rise and refused to identify an appropriate euro-dollar exchange rate.

"I will not give a figure," he said.