Only decisive action to implement structural reforms can make the euro area a more dynamic economy and raise the welfare of its citizens. Furthermore, better functioning markets should also foster capital and labour mobility as well as price adjustments in reaction to changing economic circumstances, thereby dampening economic fluctuations and reducing regional differences within the euro area.
Progress towards structural reforms would increase confidence in the medium-term production capacity of the euro area and thus help to counteract the current high degree of uncertainty. BIS Review 20/2003  3