国际英语新闻：European policy makers call for tough reforms

"Bottlenecks exist. We need to improve the business environment, overcome barriers, cut red tape, support SMEs and (push through) labor market reforms," he said, "These are all obstacles to EU's growth potential. The best way to achieve social cohesion is through economic cohesion."

The debt crisis also exposed serious fault lines in the eurozone economic governance, notably lack of budgetary discipline and economic coordination.

Dombrovskis reminded participants that many countries in the eurozone did not play by the rules, whereby government deficits are not to exceed three percent of gross domestic product.

Fiscal control mechanisms and sanctions need to be introduced and enforced, he said.

The European Commission was due to table proposals on Wednesday to seek greater economic coordination and tougher budgetary control on the European level.

Lithuanian President Dalia Grybauskaite issued a wake-up call to the EU, saying that the European countries should have a clear view about the future direction of their integration, otherwise the 27-nation EU would become a discussion club.