In particular less flexible labour markets, a lower degree of competition in product markets and higher barriers to entry for new firms as well as a less developed capital market – are seen as the main factors explaining the relatively poor productivity performance in the euro area.
Therefore, the Governing Council fully supports all the structural reforms that will permit to achieve the single market, enhance competition and promote flexibility in all markets of goods and services as well as in the labour markets, so as to enable firms to better profit from technological progress and innovation.