In particular, in order to increase investment, boost job creation and raise productivity, both the implementation of product and labour market reforms and actions to 2  BIS central bankers’ speeches  improve the business environment for firms need to gain momentum in several countries.
A swift and effective implementation of these reforms, in an environment of accommodative monetary policy, will not only lead to higher sustainable economic growth in the euro area but will also raise expectations of permanently higher incomes. Fiscal policies should support the economic recovery while remaining in compliance with the Stability and Growth Pact.