. in addition to upholding past achievements, further reform efforts are needed across the euro area, as outlined in the 2015 countryspecific recommendations, which each year identify key objectives in tackling remaining vulnerabilities and rigidities. it is only through such reforms that we can avoid a build - up of new imbalances and bring growth rates back to levels that ensure prosperity and allow households and member states to grow out of their debt. improving the functioning of the labour market remains key in this respect, with a view to ensuring a rapid adaptation to shocks or structural change. this area remains an important challenge in portugal, as also mentioned in the 2015 country - specific recommendations. taking further action is all the more important, with high unemployment, according to the latest eurobarometer, being considered the main concern to the people of portugal. but we also need reforms that encourage firms to invest. investment raises both supply tomorrow and demand today. such reforms include measures that further improve the business environment. however, investment could also be helped by addressing the corporate debt overhang. for instance, increasing the efficiency of debt restructuring tools could disburden still viable companies and thereby facilitate their investment plans. the european semester, in which these country - specific recommendations have been issued, should be a good framework to push for such a new effort. however, the countryspecific reform recommendations, as just indicated by the commission, have so far hardly or not at all been acted upon by member states. stepping up the reform momentum is therefore essential. in this respect, i have noted with great interest that you will be discussing the national reform programme later today. indeed, greater ownership not only by national governments, but also by parliaments and bodies such as this one would be crucial for the european semester to gain more traction and yield better results. making economic and monetary union work in the long run these are efforts that should be undertaken by countries individually. but there is also work to be done collectively. most importantly, governments should work towards completing economic and monetary union ( emu ). emu remains an incomplete construction. and while steps have been taken to strengthen the economic governance framework and to make our financial markets safer, this incompleteness amplified the effects of policy mistakes in the run - up to the crisis and continues to leave emu fragile and its member states vulnerable to shocks. in principle, we know where the weak spots in our construction are. the five presidents ’ report provides a road map on how

mario draghi : participation of the president in the portuguese council of state introductory remarks by mr mario draghi, president of the european central bank, at the portuguese council of state, lisbon, 7 april 2016. * * * president of the republic, president of the assembly of the republic, prime minister, president of the constitutional court, honourable members of the council of state, i am grateful for the opportunity to discuss with you today the state of the euro area and the changes that still lie ahead of us and i would like to thank the president of the republic for inviting me. on my way here i passed by the tejo river and the tower of belem. the place where five centuries ago the first maritime explorers set sail for often uncharted waters, looking for new opportunities. portugal and its people have also been going through uncharted waters and facing important challenges in recent years, as has the rest of europe. during the past couple of years, economic headwinds have swept through portugal and the euro area at large. however, we are seeing signs of recovery. nevertheless, important challenges remain as the euro area continues to be weighed down by low potential growth and high structural unemployment. in my remarks today, i will consider the state of the euro area recovery, the role of monetary policy and finally the steps needed to strengthen the euro area and the eu. the state of the euro area the euro area recovery is currently proceeding at a moderate pace. it is supported by our monetary policy measures and their impact on financial market conditions, as well as by the low price of energy. yet, investment across the continent remains weak, as heightened uncertainties about the global economy and broader geopolitical risks are weighing on investor sentiment. the recovery is also taking hold in portugal : its economy is currently growing at the same pace as the euro area as a whole and unemployment is on a clear downward trend. yet, the signs of the euro area and portuguese economic recovery should not be an indication that we can rest on our laurels. the euro area as a whole only just managed last year to return to the levels of economic activity seen before the crisis and some countries, among them portugal, are still not there. and our economies are still marked by significant vulnerabilities which need to be swiftly addressed. one key issue in this respect is youth unemployment, as it prevents young people from playing a full and meaningful part in society. indeed, despite being the best - educated generation ever, today