The lesson to be learned from the Netherlands is clear: in an upswing the economic policy must not contribute to further accelerating developments. *  *  *  Many of the large euroarea member states are struggling with economic difficulties. Large-scale unemployment leads to uncertainty. There is increasing awareness of the need for greater labour market flexibily.
Yet so far the reforms have been small. A key problem in Italy, France and Germany is that companies are not investing sufficiently in their home countries, and since households are reluctant to spend, the only option is to wait for an exportdriven upswing. A consumption-driven upswing in Europe would be desirable. To this end households must be willing and able to spend more.