I have discussed elsewhere how structural reforms make monetary policy more effective in a given country and how they help regain fiscal space.10 Countries that reform now thus effectively receive, in return, a more expansionary monetary policy and a less contractionary fiscal policy.
Indeed, our recent decision to expand our asset purchases, together with energy prices and an exchange rate more favourable to growth, have opened a unique window of opportunity for euro area governments to act together, remove structural obstacles to growth, and pull our economy out of the low growth, low confidence trap.