This is because structural reforms are the policy levers aimed at boosting the supply side of the economy and ameliorate the framework in which businesses and people operate. By tackling obstacles to the efficient production and provision of goods and services, structural reforms can contribute to higher productivity, investment and employment, thus contributing to higher incomes and helping to tackle rising levels of debt. Three specific examples of Government structural reforms include the following: First: The implementation of measures that improve business conditions, promote better allocation of resources, and strengthen market competition are essential policy actions to boost productivity and hence GDP growth. In the area of product markets, a more competitive and business-friendly environment increases incentives of firms to innovate, and invest, in human and physical capital. A relevant example includes the transposition of the EU Services Directive, aiming at lifting restrictions on cross-border providers and removing limits to competition. Unfortunately, the latest periodic assessment by the Commission of the legal and administrative barriers of the EU, which was conducted in April 2021, points to an overall slow speed of barrier removal over 2006 to 2017. Second: Labour market reforms, such as the implementation of Active Labour Market Policies, could minimise labour shortages and labour mismatches, potentially helping to contain both private and public debt. Wage rigidities in Europe have been identified in the past to be important impediments to market clearing and have been linked to high and persistent unemployment. Typically, high unemployment rates are related to bad debt, that is Non Performing Loans.
That role requires them to be vigilant over the emerging risks in a central bank and alert all the concerned parties, management of a central bank and the legislators, so that early corrective measures could be taken to mitigate the risks. Since auditors are governed by the “principle of public trust”, they would be liable for criminal negligence if a central bank becomes insolvent and auditors have not given early warning about it. To play this role effectively, auditors should endeavour to acquire the knowledge necessary for them to assess the work of a central bank and make judgments about the adequacy of that work. They should place themselves on a continuous learning programme so as to acquire not only the technical skills, but also the current global best practices relating to central banking. The central bank management on their part should heed to the warnings issued by auditors and make the necessary internal adjustments promptly. BIS Review 58/2009  7