Our expansionary policy package, while it has brought the country out of our 2000 crisis very quickly, will not be sustainable in the long term unless we introduce structural changes. And productivity is one of these changes. We must of course also work on other issues that will raise long term growth such as education and technology.
The support from governments and prudential authorities together with the ECB’s monetary policy measures has preserved financial stability so far and ensured a smooth flow of credit to the economy. Although policy support has been successful in containing immediate financial stability risks, medium-term vulnerabilities remain high. The pandemic has amplified pre-existing imbalances and created new challenges.