The unemployment rate decreased from 10.0% at end 2016 to 8.9% at end 2017 on the back of job creations of around 250K in the private sector, which exceeded expectations. In this context, the unemployment rate is expected to further decline and hit at end-2020 (7.9% in 2020 Q4) its lowest level since end-2008. [slide 8] This economic recovery and higher inflation in France as well as in the euro area as a whole (1.7% and 1.3% respectively for year-on-year harmonised inflation rates in March) have been decisively supported by our non-standard monetary policy measures. We are now following our central course of gradual normalization. And there is at present a high convergence in our views within the Governing council: whether our net asset purchases stop in September or December is not a deep existential question. Along with this clear sequencing of gradual normalisation, we also agree that our monetary policy will remain accommodative for an extended period of time. In particular, keeping a sizeable stock of assets is key for easing financial conditions over a long horizon by compressing term premia. So we are predictable, but we are not precommited. What could slow down this course of gradual normalisation? Certainly not fiscal dominance: let me be crystal clear, nobody should expect us to delay a warranted monetary normalisation in order to accommodate the debt problems of any Member state.
On the contrary, combining flexibility and skill adaptability will lead to a higher job turnover, but also to a better allocation of labour and a lower structural unemployment. Currently, the French lifelong training system is unable to provide the appropriate skills, as shown by the disconnection between job vacancies and the unemployment rate, here on an inverted scale. Unfilled vacancies represented more than 200 000 lost jobs in 2017. Apprenticeship is insufficiently developed, resulting in a high youth unemployment rate. Lifelong training and the apprenticeship system are currently being reformed, with ambitious and accurate proposals by the government. The lifelong training reform will strengthen training rights, especially for the least qualified and the unemployed. It will simplify arrangements for businesses and streamline the governance and financing of the system, while 14bn € will be dedicated to it in the 5-year investment plan. Add the announced bold plan for primary and secondary education, as well as for the access to University, and you can really expect that the French labour market and skills will dramatically improve. [slide 13] My final illustration is the interaction between labour and product market reforms. Labour and product market reform both imply an alleviation of red tape and ease business activity. 3/4  BIS central bankers' speeches  There has been significant progress in the past, as reflected by the decrease in OECD’s Product Market Regulation or network industries regulations indicators.