Moreover, still persisting state-aid for particular sectors or on an ad-hoc basis do not create the necessary environment for dynamic product markets with rapid firm entry and exit that is vital for sustained productivity and output growth. These efforts to push through a further product market reform agenda should be complemented by investments in the technological capabilities of euro area countries.
In particular in comparison with the US, it becomes clear that the euro area countries display a substantial gap in the introduction and use of ICT. There is an urgent need to reduce the gap that has opened up in this area.