Structural reforms in the labour and product markets, as well as improvements in the business environment and the functioning of the public sector will attract private investment, increase employment, productivity, and long-term growth, and will ensure more resilience to future adverse shocks.
Furthermore, some of these structural reforms (for example cutting red tape) will raise expectations of future income, and thus boost confidence and demand in the short term, supporting the recovery. In addition, policies that raise labour force participation and reduce structural unemployment are essential in order to boost future growth and employment.