The reason for such a rejection is that the short-term impact of structural reforms does not simply depend on when they are implemented but how, the credibility of reforms and their interactions with other policy measures.
This fragmentation exacerbated the overall impact of the shocks on the euro area, deepening the recession, lengthening the recovery and increasing the need for unconventional monetary policy measures. The single currency area provides fertile conditions for deeper financial integration and that deeper integration in turn helps build resilience to shocks and strengthens the effectiveness of monetary policy by means of a more homogenous transmission.