Let me extend a personal warm welcome to our guests from other countries – we believe in "Atithi devo bhava". I would like to take this opportunity to share a few thoughts on a possible rethink that may be occurring in regard to globalisation that could affect how the open economies would choose to be – to the extent the public policy has choices.
There are two main channels through which structural reforms can support long-run growth in the euro area, namely through increasing the adjustment capacity of the economy and through raising its potential growth rate. Put differently, reforms can raise both the trend of long-run growth and reduce the fluctuations around that trend.