EU economic growth should return to its potential of about 2 per cent this year, but this must be raised to 3 per cent through structural reforms, European Economic and Monetary Affairs Commissioner Joaquin Almunia said.
"Although we expect growth in the euro area and the EU to return to potential during the course of this year this is not and cannot be the limit of our ambitions," he said in a speech to the Brussels economic forum today.
"Potential growth has been on a downward trend in Europe for quite some time. It is estimated at around 2 per cent in the euro area and somewhat higher in the EU."
Mr Almunia's comments on a return to potential sounded more optimistic than the latest official forecast from the European Commission, which earlier this month cut its euro zone growth projection for this year to 1.6 per cent from 2.0 per cent.
At the time, Mr Almunia blamed the rise in oil prices and the euro-dollar exchange rate for the cut in the forecast.
Euro zone data released today showed a mixed picture, with Italian consumer confidence rising in April to its highest level since October but German investor confidence falling for the first time in five months, according to the ZEW institute.
The close-watched ZEW index fell to 20.1, its lowest level since December, from 26.3 in March, reflecting fears that a global slowdown would hamper Germany's recovery prospects.
French households meanwhile cut their spending in March by a more-than-expected 0.8 per cent.