26  The state of structural reform If euro area countries now summon up their strength and ambitiously push forward with structural reform, this will support and broaden the improvement in economic activity in the euro area.
By removing the assumption that these banks will be bailed-out by the government in times of trouble and thus eliminating the implicit subsidy, the funding costs would more  1  For further information on the state of play of the regulatory reform in Europe see EU Commission’s comprehensive review of the financial regulation agenda published in mid-May 2014 (ec.europa.eu/internal_market/finances/docs general/20140515-erfra-communication_en.pdf).