Structural reforms and economic governance
Properly implementing structural reforms can have a significant positive effect on long-term growth. Analysis by the OECD suggests that “if countries were to move to best practice in product and labour market policy settings, aggregate output in the Euro-area could rise by more than 6% by 2025”. This would almost halve the per capita gap with the United States by 2030.
It will be crucial that we ensure that every euro of the national recovery and resilience plans is used effectively by Member States to leverage reform and higher long-term investment.