These favourable conditions should be used to intensify the process of fiscal consolidation. Governments should demonstrate their commitment to structural budget consolidation by accompanying the forthcoming tax reforms with spending restraint. This would ensure the full benefits of such reforms. Governments have also acted in the field of product markets in order to make them more competitive to the benefit of consumers.
A favourable impact on prices, growth and employment of opening up sectors to competition has become clear with regard to the telecommunications and energy sectors. The challenge is now to further reduce the level of regulation so as to stimulate activities in other sectors of the economy, too. Governments and social partners have started initiatives to enable labour markets to function more efficiently.