The ECB: growth without reforms at risk, where they are more work … – The Messenger

The ECB: growth without reforms at risk, where they are more work … – The Messenger

“Insufficient progress on structural reforms in the euro area countries represent a key downside risk to the economic outlook.” There is a sort of warning in an editorial in the Bulletin of October, the ECB, and on the monetary side confirmed its readiness to further unconventional measures. But just as in Italy the government can put on record the green light from the Senate to the reorganization of the labor market, the text baked in Frankfurt stops to examine closely the effects of the long crisis on employment. And put our country among those who have suffered the most, recording a particularly sustained increase in the unemployment rate.

The economists of the central bank must, however, beyond noting that if on one hand the growth of unemployment is widespread in the Old continent, on the other hand some countries (including Germany but also Ireland itself) have been able to reduce it in the second phase of the crisis that began in 2011 in the case of the German economy, this progress “is likely to reflect the continued progress towards a greater flexibility of the labor market, a result of extensive reforms undertaken before the crisis. ” While in Ireland Estonia and Latvia “is attributable to the timing of the recession, which occurred at an earlier time, and timely and comprehensive response to the impact of the crisis on labor markets.”

So it seems that – even indirectly – The ECB also wants to express its support to the reform effort undertaken by the Jobs Act., but there is also a consideration that maybe should be kept in mind. Analyzing the strong fall in youth employment greater resilience of older workers, the report explains the phenomenon, as well as the change in the pension rules, with “strong regulatory protections reserved for permanent employees, which promote the logic to which they lay off first workers hired for the past. ” One aspect to be dealt with carefully in the decrees of the delegation, which will apply only to new hires new contract at increasing protections.

 January 9, 2014 12:47 – Last Updated: 13:22

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