Reforms that foster productivity growth, improve the flexibility and adaptability of labour markets, and increase competition in the markets for goods and, in particular, services, will produce multiple benefits in terms of faster growth and lower output volatility in an environment of price stability.
Moreover, such reforms, together with prudent fiscal policies implemented at the national level, will help bring the higher inflation rates recorded in some euro area countries down to the average for the single currency area. The ECB’s monetary policy can and will secure price stability for the euro area as a whole.