While the current upswing should help to cut cyclical unemployment, the euro area economy will only create more employment in the longer term - and achieve sustainably higher rates of non-inflationary growth - if the necessary structural reforms are enacted.
However, the evolution has also increased threats to the stability of the overall financial system, as demonstrated by the recent financial crisis. To promote financial stability, our tools for monitoring, regulation, and crisis management have had to evolve in recent years, and they will need to continue to evolve in the years to come.