This notwithstanding, as I have stressed repeatedly in the past, the key to achieving a sustainable reduction in the level of unemployment will be structural reforms in the euro area, including a lowering of the tax burden and an improvement in the fiscal expenditure structure.
Only when labour markets are more flexible and competitive pressures are high will it be possible to prevent bottlenecks from triggering upward pressures on prices at a relatively early stage of an economic recovery. Fiscal policy has to play its part in this context. The favourable economic prospects will lead to higher tax revenues.