- term. for instance, despite the recession in italy, unit labour costs have adjusted by only 0. 1 % relative to the euro area average since 2008. this is because many sectors of the economy are sheltered and wages do not respond to weak productivity. it needs product market reforms to increase competition and reinvigorate its external competitiveness. in spain, employment is struggling to rebound, and the burden on unemployment falling disproportionately on the young, because its two - tier labour market protects insiders. it needs labour market reforms to bring in outsiders and improve incentives to hire. the conclusions propose to kick - start this much - needed process of reform through three avenues. first, a renewed effort to complete the single market, in particular by opening up services and increasing labour mobility. second, a thorough assessment, carried out in all euro areas countries, of the compatibility of their labour and product markets with membership of emu. and third, for the issues identified in this assessment to be addressed through the new concept of “ reform contracts ”. let me elaborate some more on this last point. the idea behind the “ reform contracts ” is that countries would commit to specific structural reforms that have a direct positive impact on competitiveness, with those commitments formalised in a legally binding contract. the contract would be multi - annual and, to foster national ownership, initiated by the national government and approved by the national parliament. if the terms of the contract were met, financial support would be provided, targeted at the transitional costs arising from structural reforms – for instance, re - training programmes for displaced workers. what are the benefits of this approach compared to the status quo? in my view there are three, although they depend very much on how the concept is eventually implemented. first, the contracts could be entered into as part of a concerted national reform effort, rather than being seen as an imposition from “ brussels ” in the context of the eu procedures like the european semester. second, reform commitments could potentially be more precise, measurable and binding in the contracts than under those existing procedures. however, this effect would quickly be lost if it simply becomes another bureaucratic procedure. third, and perhaps most importantly, because the contracts are multi - annual they could allow for deeper reforms than are possible under existing procedures. there have been a series of recent studies that suggest that competitiveness is not only about flexibility, but also strongly connected to governance. we see clear correlations between countries ’ economic bis

than one ”. from the very beginning t2s has managed to unite the efforts of both the private and the public sector. t2s was not initiated by the market, but owing to its post - trade harmonisation agenda it has evolved into a marketdriven initiative which is supported by the public sector. in many ways it has been a unique project. first of all, no one was forced to join the t2s community. many securities depositories chose to participate because they saw great potential in t2s in terms of cutting settlement costs, fostering competition and generating new business opportunities. but overall, t2s had the potential to bring about a more integrated financial market and thus to benefit all. second, the governance structure of the project is special as national central banks, securities depositories and market participants formed a partnership with one objective – to launch t2s successfully. it is this unique collaborative effort, mentioned by some of you tonight, that has ensured the success of the t2s project, a project of such size and scale that it has changed the industry completely. finally, the project is unparalleled in that it has led the industry to impose new rules and procedures on itself. and let ’ s be honest : this does not happen often. that is why many believe that the post - trade harmonisation agenda is the greatest benefit of t2s. bis central bankers ’ speeches the launch of t2s is a great achievement. with t2s we have a big story, and i am confident that the story of its development will continue to be a winning one. of course, there are many types of stories – some rooted in fantasy, some in fiction, and some in reality. the t2s story is a reality, and to symbolise this, a 3d printer is installed in the corridor that you will pass through several times tonight. i invite you to keep an eye on it and see how the t2s logo will materialise. just like the t2s project will materialise over the next two years as the remaining 17 markets migrate to the platform. the migration of the four securities depositories from greece, malta, romania and switzerland to the t2s platform on 22 june was just the beginning. the italian market will join on 31 august, followed by three more waves of csds in march and september 2016 and february 2017. at that time 21 national markets will unite in a single market for securities settlement, with enhanced