This situation is undermining trust in national and EU institutions.7 And it is worrying because we cannot resolve this problem by resorting to the nationalist solutions of the past. Only a joint effort can reduce unemployment in a sustainable manner, using both national and European instruments.
Our first objective must be to reduce financial fragmentation in the euro area, which is illustrated by the different borrowing conditions in the various euro area countries and which has contributed – among other factors – to a divergence of investment and unemployment rates.