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Graph of the week: Structural reforms and GDP in the euro area - the benefits of acting together

Europe’s economies are deeply integrated so economic developments in one country can have an effect on others. While negative spillovers were clearly evident during the crisis, analysis shows that the coordinated implementation of structural reforms could have considerable positive spillover effects.


This graph of the week, taken from the European Commission’s latest Quarterly Report On The Euro Area estimates the impact on GDP of structural reforms in the euro area after five, 10 and 20 years . It shows that structural reforms would boost GDP by 10% more if all countries implemented them jointly than they would if countries implemented them in isolation. 

For more information on why Europe needs structural reforms and how they can help our economies, check out our video:

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