11 The projected potential growth for euro area over this period is worse still, amounting to 1¼% per annum on average. These weak growth prospects are the consequence of two interrelated phenomena.   First, population ageing is expected to result in a contraction of labour supply and to increase the fiscal burden of age-related expenditure.
  Second, in a no policy change scenario, productivity growth in Europe is expected to continue on the disappointing trend observed in the years before the financial crisis.