The new president of the European Central Bank (ECB) chaired her first meeting Thursday and encouraged governments with fiscal space to be ready to act in effective and timely manner. 

“In order to reap the full benefits from our monetary policy measures, other policy areas must contribute more decisively to raising the longer-term growth potential, supporting aggregate demand at the current juncture and reducing vulnerabilities,” Christine Lagarde said at a news conference.

She noted implementation of structural policies in euro area countries needs to be substantially stepped up to boost euro area productivity and growth potential, reduce structural unemployment

Read more: ECB head promotes structural, fiscal policies in growth