There is not enough time for me to address the necessary structural reforms. I should say, however, that, by improving the functioning and expanding the productive capacity of the euro area economy, greater market flexibility and higher productivity growth would also enhance the scope for monetary policy’s scope for supporting stronger demand without jeopardising price stability.
On the quantity side, the less favourable assessment is a reflection of the lower than expected outturns for the TLTRO and a slower contribution from the outright purchases. This has meant weaker portfolio rebalancing effects than we foresaw in the original calibration of the package.