5/7  BIS central bankers' speeches  The slowing momentum of reform So, structural reforms to boost productivity and participation and reduce structural unemployment are vital. And that is why the Governing Council continues to call for such reforms in the euro area. Yet reform momentum appears to be slowing.
Why then, given the clear benefits and urgent need for reforms, are governments reluctant to carry them out? One factor is the distributional impact of reforms, particularly in the near term, which can make them unpopular. But what is often overlooked in the public debate about structural reforms is the distributional impact of inaction.