The need for structural reform is widely recognised, for instance in the OECD Jobs Study and at the November 1997 Luxembourg European Council meeting, and some progress with new policy measures is already being made. First, there are ‘active labour market measures’ to provide education, training and work experience – particularly targeted at the long-term unemployed.
But maintaining the current momentum of reform is essential for ensuring stability in the euro area. Bank balance sheets and banking union Finally, a sustainable recovery requires healthy financial institutions. 4  BIS central bankers’ speeches  We have seen much progress in the banking sector of the euro area.