BIS central bankers’ speeches  3  however, are level effects, and it is only through increased competition that growth could follow. Furthermore, many aspects of the deal are still highly controversial. The European Commission now hopes to reach an agreement within “a couple of years”. Ladies and gentlemen An increase in investment is a precondition for higher growth rates.
Durable growth requires reforms that cut red tape, spur innovation, and make labour costs more calculable. This is not only conducive to higher growth potential in the future: it acts as a nearer-term stimulus in its own right. Investment is not only tomorrow’s supply: it is also today’s demand. How does public investment come into this equation?