We have to make our Union more stable and prosperous to deliver the security our citizens crave. And by doing so we will put ourselves in a stronger position to confront the new challenges we face today: the rise of political extremism, insecurity on our borders and an ever more uncertain global order.
This time, we also offer a special technical box that considers the dynamics of excess capacity in longer business cycles like this one. The reason this is important is that in such longer business cycles, the restructuring or closure of firms reduces potential output while creating permanent job losses.