The area in which the euro still has to work its magic as a catalyst is for a more flexible labour market. This field is lagging other reform projects. Adjusting incentives, reducing regulation and eliminating rigidities are the instruments of choice for two imminent tasks. First, to lower the employment threshold of growth, and, second, to lift the growth potential.
Thus, labour market reforms will help us to fully reap the benefits of the integration of our euro area, with its one-sixth share of world GDP. As I have explained, the introduction of the euro has had many healthy effects on the German economy. On the one hand, Germany is profiting to a considerable extent from the integration of financial markets.