BRUSSELS, Jan 4: Eurozone countries must make more structural reforms to consolidate a nascent economic recovery in the area, the Organisation for Economic Cooperation and Development recommended Thursday.

In a survey on the 12 nations sharing the single European currency in 2006 -- Slovenia became the 13th member this week -- the OECD said structural rigidities were holding back growth and encouraging inflation.

“After several false starts, the economic recovery has taken hold,” said the OECD, a policy research body for 30 leading industrialised countries based in Paris.

“If in addition structural reforms continue, the expansion will become durable and self-sustaining, a prospect also supported by sound corporate and household balance sheets and favourable financing conditions,” it said.

“With the recovery underway, attention can shift back to the euro area's longer-term challenges: subdued potential growth and a lack of resilience due to structural shortcomings,” the survey said.—APP