Lagarde lays out key reforms needed to boost EU resilience, source says

(Adds detail on specific tasks)

FRANKFURT, Feb 11 (Reuters) - European Central Bank President Christine Lagarde called on EU leaders on Wednesday to take urgent action in critical areas, including potentially divisive joint debt issuance, ?to make the bloc more resilient ?in turbulent times, a source told Reuters.

Lagarde is hoping to kickstart a timid reform process ?at an EU summit this week as the bloc comes under ?pressure from unpredictable U.S. policy and China's encroachment on ?its traditional export markets.

After ?Lagarde revealed last week that she would send EU leaders what she called a "checklist" ?of needed reforms, the ECB has prepared ?a document outlining the key tasks.

Lagarde said five areas required quick action, including establishing a savings and investment ?union, making the digital euro a ?reality, deepening ?the single market, fostering innovation and strengthening the bloc's core institutional framework, a source familiar with the document said.

"With coordinated and decisive ?collective action, Europe can unlock higher growth potential, strengthen resilience, ?and reinforce its policy autonomy and prosperity," the document said. "This requires lifting productivity, mobilising investment, and enhancing resilience," the ECB argued.

An ECB spokesperson declined to comment.

In a point that is likely to generate division ?among leaders, the ?ECB said Europe should create a common European, highly ?liquid, euro-wide benchmark safe asset that enhances the supply of high-quality ?collateral.

While the ECB has long argued for more joint debt issuance, some governments, particularly, Germany, have resisted these calls, making the case against debt mutualisation outside crisis times.

The ECB document also repeated its longstanding call for a joint deposit insurance scheme and a European framework for liquidity in cases of bank resolution, ?the source said.

The ECB also said the was a need to boost retail participation in capital markets, particularly through a savings and investment ?account, with a focus on ?pension financing. (Reporting by Balazs Koranyi; Editing by ?Sharon Singleton and Toby Chopra)