[8] New and young firms also contribute disproportionally to job creation relative to their share in employment. [9]  Unclogging the innovation channel requires us to improve the ways in which our markets allocate resources, both within and across countries. In my view, there are three areas which need particular attention.
Efficient allocation of resources First, we need to reduce the barriers to entry faced by firms, particularly in the services sector, and we need to improve the quality of insolvency frameworks. Several euro area countries lack an effective framework for early private debt restructuring. In Portugal, Greece and Slovakia, for example, it takes more than three years to resolve insolvency.