4  BIS Review 16/2008  In addition, greater labour productivity growth in the long run should be achievable through accelerated structural reforms in the product and labour markets, increased productive investment in physical capital, and the upgrading of human capital.
The projected very large increase in Greek pension expenditures over the long term – much larger than in most other EU countries – clearly suggests that, in the absence of an early and major pension reform, fiscal consolidation measures by themselves (e.g., tax increases or reductions in non-pension public spending) would not be able to eliminate the projected budgetary imbalances without jeopardising the provision of essential public services.