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FRANKFURT (Reuters) - Current low interest rates should not lull euro zone governments into thinking they have more time to implement reforms, European Central Bank Executive Board member Benoit Coeure said on Thursday.
"Low interest rates and improved financial market conditions may give a sense that reforms can be deployed over extended periods of time. But reforms are a matter of urgency," Coeure said in the text of a speech to be given in Paris.
"Time lost increases the risk of a permanently lower rate of growth and of a lost generation."
He also indicated the 17-country bloc's central bank could work in conjunction with the European Commission and the European Investment Bank, and start accepting more asset-backed securities to allow them to leverage their funds.
"The ECB can support the revival of the ABS market, provided that the risk to the Eurosystem is controllable, and the underlying instruments are simple and transparent," Coeure said.
(Reporting by Sakari Suoninen)