Fiscal strategies should ensure a growth-friendly composition of consolidation to achieve better quality and more efficient public services. In this respect, we welcome the work presented in the last two editions of the IMF Fiscal Monitor on identifying well-designed and growth-friendly consolidation measures on the revenue and expenditure sides of the budget.
Lastly, although major progress has been made, euro area countries need to strengthen their efforts to reform their labour and product markets in a decisive way in order to improve competitiveness, raise potential growth and generate employment opportunities. More precisely, labour markets need to be more inclusive, flexible and resilient, while product markets, including those for services, should be made more efficient and dynamic.