Cairns: US Treasury Secretary Jack Lew on Sunday called on the eurozone to do more to boost demand and make the structural changes needed to kick-start its stuttering economy.
"The discussions over the weekend have shown a growing recognition that Europe is going to need to do more to get its economy to where it should be," he said in Cairns after a G20 meeting of finance ministers.
"What is clear from the US experience is that the combination of taking action to boost demand in the short run and making structural changes for the long run is a important combination and it shouldn`t be a choice between the two.
"You really need to pursue both."
Last week the OECD said the sickly eurozone recovery was acting as drag on the outlook for the global economy.
It chopped by a third its 2014 forecast to 0.8 percent from the 1.2 percent expansion it had projected in May, warning the sluggish recovery was also at risk from increased tension over conflicts in Ukraine and the Middle East.
Lew, speaking at a press conference, said the principal of both growing demand and making structural reforms was "actually consistent with many of the ideas that are being discussed in Europe".
"The challenge in Europe is to get an agreement on how to bring those pieces together.
"The concern I have is that if the efforts to boost demand are deferred for too long, there are risks that headwinds get stronger," he added.
"And what I think Europe needs is more tailwinds in the economy. That`s what boosting demand in the short run would do.
"At the same time it is clear of the great need for structural reform in Europe. It is a question of finding the right balance."
Lew added that while there were "philosophical differences" with some European countries on how to drive growth, "I think the notion that there needs to be a balance between the two, there is a growing consensus."
