Given the need to ensure fiscal sustainability, recourse to more state funding for restructuring the economy and increasing investment is not a feasible option. Some of the required policy measures, notably in the financial sector, have been and are being implemented. Without a determined follow through with supporting measures on other fronts, the fragile economic recovery will stall and problems will intensify.
The world economy faces a high degree of uncertainty and that can influence the European situation. We need more expansionary macroeconomic policies as well as reforms in competition and in the regulation of markets to foster the supply side of the economy. Monetary policy has so far been the only expansionary macroeconomic policy to support the recovery.