What monetary accommodation definitely cannot do is tackle the root causes of low growth potential in the euro area – the structural barriers that hamper competition, innovation, and hence productivity. Addressing these structural deficiencies would also go a long way towards improving the transmission of monetary policy impulses. 3.
Reforms for recovery  In many member states, particularly in those worst hit by the crisis, substantial efforts have already been made towards that end. In order to unleash productivity, labour markets have become more flexible, and competition in goods and services has become more intense.