Many euro area countries adopted this approach in seeking to restore cost competitiveness following the global financial crisis, and most of those countries have now fully recovered. However, further thought could be given to the question of how European instruments could be developed in order to ensure that social safety nets prevent such adjustments from increasing poverty and undermining long-term growth.
Finally I would like to make a few remarks about public private partnerships (PPPs) as a vehicle for building infrastructure projects. There are several sound reasons for using PPPs to develop some infrastructure projects.