The successful introduction of a broad range of pan European and sector-based indexes, and the subsequent launch of derivatives and new investment vehicles such as Exchange Traded Funds (or “trackers”) based on these new indices, highlights this change in investors’ approach. Empirical evidence suggests indeed that sector-related factors are playing an increasing role in price dynamics. As integration enlarges the range of potential investors, it also fosters the development of private equity and the financing of young and innovative firms, a trend that is obviously welcomed. 1.4 Behind the scene, supporting the evolutions that I just touched upon, market infrastructures have undergone radical changes. As an example, as regards trading infrastructures, the creation and expansion of EURONEXT is a striking illustration of the on-going consolidation process: the EURONEXT group now links the French, Belgian, Dutch and Portuguese stock markets, and has concluded co-operation agreements with several other European markets. The group also significantly increased its presence on interest rates derivatives markets. This ongoing movement of consolidation affects securities clearing, settlement and depository infrastructures, as providers aim to propose an integrated transaction service covering the entire securities processing cycle. In the field of post-market infrastructures, CLEARNET is pursuing its pan-European expansion by completing its operational integration throughout the EURONEXT area. The clearing house also reached an agreement with its Italian counterpart, enabling it to offer central counterparty services for transactions executed on the Italian government securities market.

As I have already said, a significant part of the responsibility for the low growth potential of the Spanish economy lies with the limited use of labour. In my opinion, this is closely related to the structural shortcomings that have, for decades, hampered the operation of the Spanish labour market. These shortcomings not only result in insufficient use of this productive resource, but also give rise to a further factor that limits the growth of productivity in Spain relative to other European countries. The Spanish labour market displays two undesirable stylised facts. First, it is characterised by the persistence of significantly higher unemployment rates than in other European countries, even in upswings. Combating high unemployment and, in particular, its long-term component requires the appropriate instruments, in the form of active labour market policies, in order to increase the employability of persons who have lost their jobs, so as to avoid a permanent deterioration in their human capital and in the growth potential of the economy overall. 9  See P. Cuadrado et al. (2020), A sectoral anatomy of the Spanish productivity puzzle, Occasional Paper No 2006, Banco de España. 20  Second, the unemployment rate fluctuates sharply, which means that inequality also increases substantially during crises. These sharp cyclical fluctuations in unemployment are explained by the high rate of temporary employment and the low protection of workers with temporary contracts compared to those with permanent ones, which means that employment adjustment in recessions falls on temporary workers.