japan, " tankan ( short - term economic survey of enterprises in japan ). " chart 9 developments in business fixed investment plans manufacturing y / y % chg. nonmanufacturing y / y % chg. - 5 mar. survey june survey sep. survey fy 2017 fy 2019 average ( fy 2017 - 2019 ) dec. survey forecast actual mar. survey june survey sep. survey dec. survey forecast actual fy 2018 fy 2020 note : figures include software and r & d investments and exclude land purchasing expenses. figures are for all enterprises. source : bank of japan, " tankan. " lastly, let me turn to exports. as can be seen in chart 10, exports had been sluggish since 2019, and the rate of decline accelerated for the april - june quarter of 2020 when the effects of covid - 19 intensified. this decline is particularly evident in exports to europe and the united states, and in exports of automobile - related goods, it - related goods, and capital goods. deterioration in external demand has likely bottomed out due to the easing of public health measures in many countries. however, it will take a considerable amount of time for countries to recover from the impact of covid - 19. bearing this in mind, my view is that it will continue to be difficult to hold out high expectations for a recovery in exports as the momentum for recovery in external demand remains weak for the time being. chart 10 real exports y / y % chg. cy region goods united states 2. 4 1. 7 eu 7. 7 china q2 may 0. 4 - 37. 4 - 20. 1 8. 2 45. 3 - 6. 0 - 0. 2 - 24. 8 - 11. 4 10. 9 - 3. 4 0. 7 2. 5 - 5. 1 5. 4 5. 5 - 1. 5 6. 2 - 0. 6 1. 0 - 3. 4 - 8. 4 - 6. 6 - 5. 8 14. 7 - 8. 3 - 2. 9 - 0. 6 - 2. 2 - 3. 1 - 2. 0 - 47. 4 - 22. 2 21. 4 33. 4 4. 1 - 1. 7 1. 6 1. 7 0. 2 0. 5 - 14. 9 - 4. 4 - 2. 7 5. 9 2. 2 - 2. 0 - 0. 4 1. 1 - 1.

are policies supporting the creation of new businesses and housing policies that do not hinder labour mobility, e. g. through rent subsidies or high transaction costs. in most countries, there has been some progress with labour market reform over the past decade, leading to a small reduction in structural unemployment. nevertheless, labour market flexibility needs to be enhanced further, especially in view of the large number of people who are wastefully underemployed or unemployed in europe, resulting in individual difficulties and welfare losses to society. in the goods and services markets, further steps in reforming and liberalising markets would improve the efficiency of price signals, resulting in reduced inflation persistence and a speedier adjustment mechanism to shocks. services markets in the euro area hold a particularly great potential to benefit from greater cross - border competition, especially as this sector is likely to have a sizeable impact on employment given its high labour content. that is why the eurosystem strongly supports the lisbon process and shares the views expressed by the former dutch prime minister wim kok in his recent mid - term assessment of the lisbon agenda. concluding remarks let me now briefly say a few words in conclusion, • in terms of macroeconomic stability, the euro area and the new enlarged eu are committed to a stability - oriented framework that provides the best conditions for sustainable economic growth and employment. the results of the euro area in terms of nominal and real convergence are impressive and compares well to the criteria for an optimum currency area. the euro has played an important role in these achievements and will continue to do so. • in terms of what may lie ahead, a process of change has been set in motion. the internal market and the single currency, combined with structural changes in the world economy, are changing economic conditions at a rapid pace. ultimately, this may lead to a higher degree of economic diversity and regional specialisation, which, provided that it is led by market forces, should enhance the economic welfare of the area as a whole. issues related to the redistribution between more advanced and lagging regions may pose a challenge for regional policies at national and eu level. • automatic fiscal stabilisers can contribute to economic stability via their smoothing impact on aggregate demand. given the lack of a cross - border central fiscal transfer mechanism, it is vital that these stabilisers are able to operate freely. this calls for renewed efforts to return to sound fiscal positions, as those we saw in the run - up to monetary union. • in terms of structural policies,