But let me now elaborate on the first and the second requirements of the euro area for overcoming the crisis – fiscal and structural reforms in the member states as well as a better framework for European Monetary Union. Significant progress has already been made with regard to budget consolidation and, to a lesser extent, in terms of structural reforms.
This is true of the programme countries which have to comply with the conditions of the respective adjustment programmes. And it is also true of Italy and Spain, the third and fourth-largest euro-area economies, which have seen a significant rise in their bond yields. Their governments have embarked on labour market reforms and spending cuts. But there is no room for complacency.