In order to improve the chances of achieving the Lisbon objectives, the coherence and consistency of structural reform policies need to be improved, as does the process of delivery. Success of the reform agenda is essential if Europe is to generate more growth and more employment in an environment of increasing global competition, population ageing and enlargement.
In particular, the coming demographic transition will create severe fiscal challenges, as the cost of entitlement programs rises sharply. I hope to have persuaded you today, however, that the economic implications of this transition go well beyond fiscal policy.