We also need a commitment to sound and sustainable public finances and sound national economic policies. Both must be monitored by a rigorous, credible and focused surveillance framework.
In Germany, for example, after the dramatic contraction in demand as a result of the 2008 crisis, firms did not get rid of workers. Unions accepted wage reductions or shorter working hours and that prevented a worse decline. Thus, despite apparent rigidities, the labour market responded in a very flexible way.