I now want to put forward the argument that several changes in this second decade and beyond will have to come from the “E” in EMU: namely that there is a need for further substantial efforts and reforms on the economic side. In other words, I argue that there is a need for a sound economic management. This has two facets.
The first is that the overall level of economic performance in the euro area needs to improve. Think, for example, of the question as to how the euro area as a whole might raise its potential growth…and actually grow at such a higher level. The second facet is that we need to understand and address diversity of economic performance across the euro area.