Trichet says ECB wants action on revamped EU reform agenda UPDATE

(Adds comment on cost of lack of reform)

PARIS (AFX) - European Central Bank president Jean-Claude Trichet called on the EU to implement its revamped programme of structural reform.

'We expect a lot from this relaunching of the Lisbon agenda,' Trichet said at the OECD Forum, a conference which runs in tandem with the annual OECD ministerial meeting.

He said the economy strategy is on the right track, with consensus on the goals and agreement on the institutional framework.

'The next decisive step is now to accelerate the putting into practice of these plans,' he said.

'The earlier this happens, the earlier economic activity,employment and innovation in Europe can be lifted to a higher level and standard,' he said.

Trichet said the acceleration of reforms would benefit the global economy as 'an economically stronger Europe will also raise our contribution to economic prosperity elsewhere'.

He said Europeans recognise that their reform programme is their contribution to 'the orderly unwinding' of global imbalances, and they expect other key players to take equivalent action.

Trichet also said lack of progress in implementing structural reform could mean an economy faces costs rather than benefits at a time of technological progress.

'In other words, it seems that there is not only an opportunity cost for being inflexible in a period of very rapid technological change ... but also a direct cost, coming perhaps ... from the fact that under the stress of accelerating changes the economy becomes even more inflexible and hostile to technological progress than in normal times,' he said.

Asked about exchange rates, he said he sticks to the communique agreed in April at the last IMF meeting. victoria.main@afxnews.com vm/joy COPYRIGHT Copyright AFX News Limited 2005. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News. AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited