There is still a long, hard struggle ahead to fix the U.S. and Europe’s economies, Larry Summers, the Harvard University professor and former Treasury Secretary, told CNBC at the World Economic Forum in Davos Friday.

“We have all got a lot of work to do,” Summers, who played a key role in the early years of President Barack Obama’s administration, said.

He believes that European governments should be “redoubling” their efforts to solve the crisis.

The euro zone debt crisis has been top of the agenda in Davos this week. German Chancellor Angela Merkel opened the conference with a downbeat speech emphasizing the need to solve the problems in the euro zone.

The European Central Bank injected more liquidity into the European markets through a long term refinancing operation (LTRO) in December, which Summers described as “a very important step.”

“That’s lubricating credit and economic activity. The sense that we are near the edge of a precipice has been clawed back,” Summers said.

“The question is whether this is grounds for complacency or will the time provided by the LTRO be used to make the fundamental adjustments necessary.”

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