The unacceptably high European unemployment rates need to be reduced sharply by clear-cut labor market reforms and  BIS Review 41/1999  8  responsible wage developments, which take into account productivity developments and international competitiveness. The dialogue between the Eurosystem and other policy makers needs to be intensified, while recognizing each others’ exclusive responsibilities.
In this respect, we are just at the beginning of a learning process. I am confident that, over time, informal fora, which have worked well elsewhere, will also evolve at the European level. Central and Eastern European governments and central banks will face a highly complex set of economic policy co-ordination mechanisms when entering the Union and, at a later stage, the euro area.