The steady recovery and political developments provide an opportune moment
for advancing much-needed reforms to strengthen the architecture of the Economic and
Monetary Union. Pro-EU political parties have gained momentum, while strong private
consumption and supportive policies have boosted growth. Unemployment is falling
amid solid job creation, although it remains elevated in some countries. Productivity
growth has been lagging in some countries, leading convergence across countries to
stall and competitiveness gaps to persist. While the recovery has been resilient to shocks
so far, risks remain and continued monetary policy support is required.