Now that the euro area has emerged from the financial crisis, fundamental reform of the economies in the Economic and Monetary Union should be topping policymaker's agendas. This should include measures to increase the labour participation rate and enhance investment opportunities
Reforms bolster growth
Reforms will increase structural growth and hence strengthen the government budgetary position. Especially the southern member states, where the scope for reform is widest, could benefit from this. According to the estimates presented in the book, GDP gains in some countries, such as Greece and Italy, could rise to almost 10%, provided they are willing to implement ambitious reforms (Chart 1). In the Netherlands too, there is room for pushing up structural growth, for example by increasing the labour participation rate by means of targeted tax measures.