The measures should focus on enhancing wage flexibility and increasing competition in product markets, particularly in services. However, the need for structural reform does not stop with the euro area countries hit most by the sovereign debt crisis. For instance, the US economy would benefit from a more sustainable growth model, where solid and medium-term oriented economic policies strengthen potential growth and job creation.
This would include structural reforms that address weaknesses in the labour market and in particular reduce long-term unemployment. Policies that stabilise the housing market, such as facilitating refinancing of mortgage debt, would also help households to deleverage and support private consumption in the medium term. Sustainable growth is also enhanced by policies that avoid the build-up of excessive misalignments in asset prices.