It takes less than one year in Japan, Norway and Canada. [10] The absence of effective insolvency frameworks also makes it harder to deal with non-performing loans. It constrains collateral enforcement and raises the risk of banks granting forbearance to “zombie” firms. [11] Our economic governance framework, the European Semester, has been effective in informing and exchanging views on our economies.
But member states don’t walk the talk. The macroeconomic imbalance procedure always lacked teeth and none of the 2018 recommendations for euro area countries have been fully implemented. In this context, national productivity boards are useful complements that could strengthen the European Semester discussion. Completing the Single Market Second, we must make better use of the economies of scale offered by the Single Market.