FRANKFURT German Finance Minister Hans Eichel believes that euro-zone governments have done their job in creating the conditions for stronger economic growth and now it is the turn of financial institutions such as the European Central Bank, the ***Financial Times Deutschland****** reported Friday.

The governments of the 12 Euro-zone countries had introduced tax reforms and opened up their telecommunications markets. Wage agreements, too, had remained very modest, AFP reported.

"Now, it's the turn of others," Eichel was quoted by the newspaper as saying.

He was not quoted as naming the ECB directly.

Governments were no longer able to take measures to influence fluctuations in the economy, the minister argued.

"The state cannot steer the economy. That doesn't work," Eichel argued. "Neither can it transfer stock market volatility to fiscal policy. If it did, there would be chaos."

The minister acknowledged that the current high rate of inflation in the single currency area put the ECB in a difficult position.

He predicted, however, that the price pressures would ease during the latter half of this year.

For its part, the ECB insisted in its June monthly report published Thursday that it had acted appropriately to cushion the euro area against the global downturn. And it said the main solutions lay with governments which had to set their economies free from heavy regulation to boost growth and jobs.

The bank also took a number of Euro-zone governments to task for failing to reduce their public sector budget deficits as required by the EU stability pact.

*****FT Deutschland**** quoted Eichel as saying that in view of the sharp slowdown in growth, he was prepared to allow so-called "automatic stabilizers" to switch in.