Brussels, 08/07/2004 (Agence Europe) - The monthly bulletin of the European Central Bank (ECB) published on Thursday confirms inflation figures and the still relatively distant prospect of returning to a rate that is in keeping with the goals of the ECB (see EUROPE of 2 July, p.16). The reasons, already evoked by Mr Trichet after the Governing Council on 1 July, still mainly relate to the upward pressure exerted by oil prices.
The stakes mentioned in this bulletin include the slowdown in growth in labour productivity in the euro zone compared to the figures registered in the United States. Since the middle of the nineties, the slowness in work productivity seems above all due to a smaller capital contribution and production factors that are less substantial than in the United States. The prospect of an ageing population in Europe requires more reforms to support the supply of labour and its use in order to increase medium-term growth. Implementation of the Lisbon strategy is still more urgent and above all means a rise in competition on the goods market by reducing barriers to market access, for example. The labour market lacks flexibility and the ECB therefore hopes there will be reform in the education systems also.