The June European Council will adopt measures to make sure that the growth-enhancing potential of the Services Directive is fully exploited. In labour markets, we see that Member States have started to implement important structural reforms. Spain is increasing the flexibility of employment contracts and addressing the problem of the country’s “dual labour market”.
Here in Poland, the increase in the retirement age to 67 is a good example. It illustrates the fact that implementing structural reforms can be painful. But this pain should pay off in the future, as we have seen in Germany with the “Agenda 2010” labour market reforms implemented from 2003 to 2005. Germany is now profiting significantly from these reforms now.