A main focus should be put on the groups that face particular challenges when trying to enter the labour market, such as women, the youngest and oldest age groups and the lowest educated. In the new Member States there is a particular need to address skill mismatches, the limited domestic labour mobility, and to constantly upgrade human capital.
Throughout the enlarged European Union the labour market performance can be considerably improved, what calls for an immediate action that must reflect the characteristics of national labour markets. Fostering competition in product markets does pay off Turning to product market reforms, their key role should be to enhance innovation, ensure an efficient allocation of resources, and create business-friendly environment.