In the third quarter GDP grew by 3.7 per cent, fueled by a pick-up in consumption and the continuation of the expansionary phase of the investment cycle, which has now spread from IT products to include traditional capital goods. Payroll employment rose, at a monthly rate of 300,000 from March to May and of 100,000 from June to September.
Coming to the second channel, enlargement will lead to a widening of the Single Market and most likely to an increase in competition both for the acceding countries and for the present Member States. Taking the experiences with the Single Market as a benchmark, this could reduce price pressures (via a decrease in mark-ups) and enhance productivity (by exploiting economies of scale).