BERLIN (Dow Jones)--Angela Merkel Wednesday urged euro-zone members to become more competitive and take the strongest countries' economies as a role model, highlighting Berlin's tough reform stance ahead of a European Union summit later this week. "One of the main causes for the monetary union's crisis is the grave difference in the competitiveness of the 17 member states," the German Chancellor told reporters. "If we don't manage to achieve a process of adjustment, we won't be able to stabilize the euro area permanently." Germany is one of the strongest-performing economies in the euro zone and unlike most other countries, its labor market is reporting low unemployment figures. Berlin has repeatedly said its structural reforms over past years has helped to turn the former 'Sick man of Europe' into the currency area's growth engine. Merkel stressed the euro zone has only "bought time" with its bailout facilities and that is why member countries must urgently enact reforms. She implored fellow EU leaders to look to the strongest-performing economies as role models for reform and not mediocrity. "That's what I will tell the [EU] Council meeting very, very frankly tomorrow and the day after," Merkel said. Germany has been one of the most outspoken countries on this issue, arguing in favor of budget austerity and economic reform instead of providing more money to countries weighed down by high debt burdens. Commenting on February's jobless numbers, which showed seasonally adjusted unemployment was unchanged from January, Merkel said the figures confirm "the encouraging trend" but they also highlighted the shortage of skilled workers in Germany. -By Andrea Thomas, Dow Jones Newswires; +49 30 2888 4125; andrea.thomas@dowjones.com

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