Such improvement in the corporate sector has had positive effects on the household sector. In the labor market, the active job openings-to-applicants ratio has been at a high level last seen during the period of high economic growth, and the unemployment rate has declined to around 2.5 percent, the level observed during the bubble period (Chart 5).
Moreover, the contribution of expenditure led consolidation is modest; targeted measures focus on the revenue side. Historical experiences, however, show that revenue-based consolidations are the less successful and sustainable ones. In the consequence, credibility not only of national but also of European budgetary rules will be further undermined.