According to the latest survey conducted by the Eurosystem, in the second and third quarters of 2011 access to finance remained one of the most pressing problems for SMEs, which continue to rely mostly on banks for external financing.
In turn, a sound and dynamic labour market not only optimises initial matches between workers and firms, but also promotes fluid movements of workers across industries, regions and skills. While employment protection legislation and wage-setting institutions have successfully reduced wage inequality, excessive protection jeopardises firms’ productivity and job creation – especially for low-skilled workers and new entrants.