Countries have been asked to spell out how they will turn European commitments into real action at home in so-called National Reform Programmes, which are discussed with their national parliaments and social partners. Let us hope that this increased national ownership will be instrumental in beefing up the commitment to reform.
Recent developments in financial markets support the view that households may not be a position to make informed choices owing to a lack of financial sophistication. They do not fully grasp the risks inherent to their investment decisions, even more so, if these investments have medium to long-term horizon.