But the monetary policy stance of the ECB has to be focused on the entire euro area. It cannot address divergences among individual euro area countries. That is the task of governments: they must undertake determined policy actions to address major weaknesses in the fiscal, financial and structural domains. We note that progress is being made in many countries.
These measures need to be complemented by growthenhancing structural reforms to facilitate entrepreneurial activities, the start-up of new firms and job creation. Here, governments should be more ambitious. At the European level, there has been substantial progress towards reinforcing the economic governance framework.