To some extent we will, hopefully, be able to lessen the problem through higher labour participation, for longer. But most of all we will need higher productivity of those working. That means making the system as flexible as possible and as encouraging as possible to innovation.
Our TLTRO III programme has seen a sizeable takeup by banks, with a combined gross allotment in the June and September TLTROs of nearly € trillion. In net terms, the liquidity injected by these operations amounted to € billion.2  TLTRO funding has also been effective in easing the terms and conditions for loans to households and firms.