Given that the full effect of many structural reforms will only emerge with a time lag, it is indeed of utmost importance that national policies continue to focus not only on fiscal measures but at the same time address key structural problems in labour and product markets.
This would – and, indeed, will – complement full compliance with the reinforced EU fiscal and governance framework, including rapid implementation of the fiscal compact. Full compliance is important to send a strong signal to markets and strengthen confidence in the soundness of public finances.