4.1 Medium and long-term challenges In addition to these risks to the recovery, there are also some medium to long-term challenges that need to be addressed in order to strengthen the positive outlook. In particular, The currently high long-term unemployment increases the risk that human capital is destroyed, affecting long-term potential growth.
Potential growth is also negatively affected by the emigration of young and highly-qualified professionals. Moreover, persistent unemployment has negative effects on life satisfaction and health, undermining trust in public institutions and posing a risk for social cohesion.