These challenges require structural reforms in the fiscal domain, in the management of social welfare and pensions as well as in financial, product and labour markets. The required measures have been identified and the Lisbon agenda has set the appropriate direction for the euro area. Important progress has already been made in many euro area countries.
It is of the utmost importance that the implementation of structural reforms be speeded up, notably in labour and product markets, where the responsibility lies with governments, parliaments and social partners. This would, over longer horizons, significantly improve the euro area’s growth potential and increase the economic welfare of all its citizens. It would also enhance the confidence of economic agents over shorter horizons.