It is necessary that all euro area countries live up to their obligations in full. Fiscal policy must be part of a comprehensive and growth-oriented strategy, focusing - as a rule - on restraining the volume and on improving the structure of public expenditures.
The euro area economy is held back not only by current geopolitical tensions, but also by frictions in labor and product markets. Structural reforms in these areas are of utmost importance to increase the flexibility of the economy, thereby improving its resilience against detrimental shocks and raising the euro area’s noninflationary growth potential. Policymakers are well aware of this assessment.