Second, when reforms were undertaken, there were implementation obstacles. Ex ante the approach to structural reforms was broad-based and aimed at all critical weaknesses in a comprehensive manner. But ex post it turned out that it was easier to change institutions and rules in the labour market than in product and services markets.
This meant that marginal cost improvements did not automatically translate into price improvements. For example, labour costs fell by around by 18% in Greece from 2009–13, but price adjustments did not  2  See Blanchard, O., and F. Giavazzi (2003), “Macroeconomic Effects Of Regulation And Deregulation In Goods And Labor Markets,” The Quarterly Journal of Economics, MIT Press, vol. 118(3), pages 879–907, August.