But after completing the manoeuvre, it will be in a much better position to accelerate to take-off speed. Progress has also been made by overcoming labour market rigidities. A number of labour market reforms have been introduced to foster employment and reduce adjustment costs during economic downswings. As an additional measure, the retirement age has been raised as well.
Product market rigidities that weaken competition, produce regulatory red tape and inhibit growth are also being addressed. And according to the World Bank’s Doing Business Report, the efforts should be starting to pay off: Portugal, Italy and Spain have climbed up the ranking ladder by 17, 13 and 10 positions respectively over the last four years. Greece has moved up by 37 positions.