There exists a large consensus that structural reforms are needed to boost potential output and productivity growth in the euro area and to reduce unemployment which is much too high, especially, but not only, among the youth. Incidentally, let me say that I prefer speaking more generally of increased productivity rather than increased competitiveness, the latter being a more elusive and relative concept.
The world as a whole can become more productive, but it cannot gain in competitiveness. Structural reforms, notably in product and labour markets, but also through actions improving the business environment, can have two key effects and here I refer to ECB President Draghi’s speech this year at the ECB Forum on Central Banking, which took place in Sintra earlier this year.