Increasing competition together with this shared responsibility has also strengthened the incentives to improve the efficiency and viability of public sector, labour markets and pension system structures. At present, there are no major imbalances in the euro area which would require long-term adjustment.
Economic policies in the euro area as a whole remain geared towards price stability, the objectives of the Stability and Growth Pact, wage moderation and structural reform. Further positive effects on economic growth should stem from the impact of tax reductions in several member countries and from the fact that financing conditions are favourable.