The European Commission concluded that the overwhelming majority – meaning more than 90% – of country-specific recommendations had only been implemented to “some” or a “limited” extent in 2017, similar to the previous year.2 The European Commission suggests supporting countries’ reform efforts through the EU budget. In principle, this could create positive incentives to implement reforms.
Chart 4a  Chart 4b  Developments in short-term and long-term inflation expectations in the euro area  Developments in short-term and long-term inflation expectations in the United States  (20-day centred moving averages of daily observations, March 2004-August 2005)  (20-day centred moving averages of daily observations, March 2004-August 2005)  Note: short-term inflation expectations are measured by the Note: short-term inflation expectations are measured by the 2008 BEIR.