The Commission proposal leaves an important role for the future judgment of the competent authorities (which in most cases would be the ECB), the EBA and the Commission itself in detailing the separation process and metrics to be used. Here transparency, predictability and public accountability are crucial.
As outlined in exhibit 5, several factors may work toward raising the labor force participation rate. In particular, increasing longevity and improvements in health may induce many more individuals to remain in the workforce well past age 65. For their part, employers, upon facing slower growth in the labor force, may look for ways to attract workers into the labor market.