BRUSSELS, June 25 (Reuters) - The euro zone is recovering faster than earlier expected, but still needs continued fiscal and monetary support so that the pandemic does not leave scars, European Central Bank head Christine Lagarde told European Union leaders on Friday. "Euro area GDP is recovering and will return to pre-pandemic levels by the first quarter of 2022, one quarter earlier than expected in spring," Lagarde told the leaders according to one official familiar with the talks. "Fiscal and monetary policy continue to play their role in underpinning economic activity and bolstering confidence. Continued support is needed to avoid that the pandemic leave large scars o the economy," she said.