Without these reforms, the loss of competitiveness deriving from rigidities will become a source of national, or regional, unemployment and inefficient under-utilisation of resources. Stronger competition and the removal of structural rigidities will increase the flexibility of the economy and lower the adjustment costs associated with asymmetric shocks affecting one particular country or region.
Although considerable progress has been made, much remains to be done. Ladies and Gentlemen, allow me to also stress the importance of your role in contributing to informing European citizens about the dangers caused by divergences in price developments across countries or regions, which might arise as a result of excessive wage increases or the unsustainable expansion of profit margins at the local level.