It finds indicators suggesting that the varied reform efforts in these countries appear to be starting to have a positive effect. Both reform efforts and their effectiveness seem to vary across the four countries, with Spain showing the strongest signs that the reforms are starting to pay off, followed by Portugal, while Italy and Greece seem to lag behind.

The report aims to detect the transmission channels through which reforms ultimately affect macroeconomic outcomes and pays special attention to the role that the entry and exit of firms plays. Business dynamics channel the effects of reforms on efficiency of resource allocation and on productivity.

The estimated potential gains suggested by the report would be significant once their full impacts are realised, although there is plenty of scope for further improvement.