• In this regard, private and public risk-sharing should be enhanced by moving forward with the Banking and the Capital Markets Union, and by creating a centralised fiscal stabilisation tool. To avoid moral hazard, risk-sharing should go hand-in-hand with risk reduction and close economic policy coordination. Moreover, we need to improve income convergence and to ensure that economic rebalancing operates symmetrically.
So there is a tension there. Our expectation is that wages growth will pick up from here, but the pick-up is likely to be only gradual. Firms are currently reporting a record number of job vacancies and increasingly telling us that it is hard to find workers with the right skills.