Euro area Member States are recommended to under take structural reforms

In addition to respecting their country specific recommendations, euro area Member

States were recommended to undertake structural reforms that improve the

functioning of monetary union. They should target budgetary consolidation, the

quality of public finances, competition on product markets, especially in services and

financial integration, the alignment of wage with productivity developments and the

implementation of flexicurity principles on labour markets. A further strengthening

of both governance and international representation in international fora were

considered items the euro area should also focus upon. While there has been

considerable variation across policy areas and Member States, the euro area made

overall limited progress over the last year with meeting the recommendations

addressed to its Member States.