{
  "title": "Lifting Euro Area Growth: Priorities for Structural Reforms and Governance",
  "publication": "IMF Staff Position Notes, November 22, 2010",
  "sourceUrl": "https://www.imf.org/en/publications/imf-staff-position-notes/issues/2016/12/31/lifting-euro-area-growth-priorities-for-structural-reforms-and-governance-24341",
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  "summary": "To live up to its growth potential and secure its inclusive social model, the euro area must make better use of its available labor.",
  "sections": [
    {
      "heading": "Core diagnosis",
      "content": "- The euro area must make better use of its available labor to live up to its growth potential and secure its inclusive social model.\n- Boosting growth in the aftermath of the crisis is essential to prevent unemployment from becoming a long-term problem and to facilitate the return to fiscal sustainability.\n- Labor utilization in the euro area has been lagging considerably behind its best performing peers.\n- Fewer hours worked may partly reflect social choice, but higher unemployment rates and lower participation rates cannot easily be attributed to individual preferences; policies and institutions matter more.\n- Relatively low labor productivity is a significant problem in southern Europe and an increasing challenge across the euro area."
    },
    {
      "heading": "Key findings",
      "content": "- Labor utilization and labor productivity shortfalls are central constraints on euro area growth.\n- Differences across countries require differentiated policy responses rather than one-size-fits-all prescriptions.\n- Harmonization of key labor market features would help address intra-euro area imbalances."
    },
    {
      "heading": "Policy recommendations (short and medium term)",
      "content": "- Implement a comprehensive approach to labor and service market reforms.\n- Improve access to the labor market, including through some harmonization of:\n  - labor taxation,\n  - unemployment benefit systems,\n  - employment protection.\n- Reduce differences in labor taxation, unemployment benefit systems, and employment protection across countries.\n- Improve regulation and reform taxes and social benefits to increase labor utilization."
    },
    {
      "heading": "Country- and region-specific priorities",
      "content": "- Southern Europe:\n  - Focus on regaining competitiveness.\n  - Address low labor productivity as a priority.\n- Core euro area countries:\n  - Promote higher labor force participation.\n  - Open service sector markets further."
    },
    {
      "heading": "Longer-term priorities",
      "content": "- Focus policy efforts on:\n  - innovation,\n  - education,\n  - continuing financial sector reforms."
    },
    {
      "heading": "Metadata (from source)",
      "content": "- Authors: Luc Everaert, Céline Allard\n- Publication date: November 22, 2010\n- Series: IMF Staff Position Notes\n\nSource: IMF Staff Position Note \"Lifting Euro Area Growth: Priorities for Structural Reforms and Governance\" (November 22, 2010) by Luc Everaert and Céline Allard.\n\n---\n\n Content in this bundle\n\n- spn1019\n  - spn1019 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - spn1019 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/imf-staff-position-notes/issues/2016/12/31/lifting-euro-area-growth-priorities-for-structural-reforms-and-governance-24341"
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    "Authors: Luc Everaert, Céline Allard",
    "Published: November 22, 2010",
    "Series: IMF Staff Position Notes",
    "DOI: https://doi.org/10.5089/9781462302109.004",
    "The euro area must make better use of its available labor to live up to its growth potential and secure its inclusive social model.",
    "Boosting growth in the aftermath of the crisis is essential to prevent unemployment from becoming a long-term problem and to facilitate the return to fiscal sustainability.",
    "Labor utilization in the euro area has been lagging considerably behind its best performing peers.",
    "Fewer hours worked may partly reflect social choice, but higher unemployment rates and lower participation rates cannot easily be attributed to individual preferences; policies and institutions matter more.",
    "Relatively low labor productivity is a significant problem in southern Europe and an increasing challenge across the euro area.",
    "Labor utilization and labor productivity shortfalls are central constraints on euro area growth.",
    "Differences across countries require differentiated policy responses rather than one-size-fits-all prescriptions.",
    "Harmonization of key labor market features would help address intra-euro area imbalances.",
    "Implement a comprehensive approach to labor and service market reforms.",
    "Improve access to the labor market, including through some harmonization of:",
    "Reduce differences in labor taxation, unemployment benefit systems, and employment protection across countries.",
    "Improve regulation and reform taxes and social benefits to increase labor utilization.",
    "Southern Europe:",
    "Core euro area countries:",
    "Focus policy efforts on:",
    "Authors: Luc Everaert, Céline Allard",
    "Publication date: November 22, 2010",
    "Series: IMF Staff Position Notes",
    "**_spn1019**"
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