danish mortgage credit was that homeowners could borrow on capital - market terms. the bonds were callable, so that borrowers could take advantage of falling interest rates, but were not affected by interest - rate increases. the terms offered by the various mortgage - credit institutes were virtually identical, and bonds issued by the various institutes were perceived as almost perfect substitutes, called " uniform bonds " or " enhedsobligationer ". the mortgage - credit market has also traditionally been closely regulated in terms of maturities, mortgageable limits and types of loans. the limitations on access to lending, designed to steer cyclical development, were gradually removed so that legislation was based solely on the security aspects. up to the mid - 1990s this system by and large reigned supreme. but then the development of new mortgage - credit products began to take off. today there is a choice between not only fixed and adjustable interest rates, but also mixes such as adjustable interest rates with a ceiling and deferred amortisation for fixed periods, while commercial banks have also joined the market to offer mortgage loans. loan conversions are the order of the day, and the average borrower keeps loans unchanged for a shorter period than was the case just a few years ago. homeowners are bombarded with offers of loan conversion, and the products offered are becoming ever more complex. institutions compete intensely to be the first to introduce new products in order to win market shares. the only parameter that does not seem to be subject to competition is the contribution fees for loans for owner - occupied homes and summer cottages. the mortgage - credit sector should perhaps consider whether the many new products will lead to bond series that are so small that they adversely affect the very favourable interest terms traditionally characterising danish mortgage - credit bonds. the rising indebtedness, greater use of adjustable interest rates and the opportunity for deferred - amortisation loans have brought up the issue of the vulnerability of households in the event of a significant increase in interest rates. on the basis of data made available by nykredit, danmarks nationalbank has analysed the sensitivity of homeowners to changes in interest rates. the analysis will be published in our annual publication " financial stability ", which will be issued on 12 may. the analysis exclusively considers effects on interest costs without incorporating the mortgageable values. the higher the homeowners'incomes, the lower their interest burden, i. e. interest expenses as a ratio of gross

their education to work on the building sites. in manufacturing, too, there is pressure for reallocation. already before the crisis, the employment trend in europe has been downwards for an extended period. the eu27 area has lost 5. 8 million manufacturing jobs since the year 2000. this persistent weakness on the labour market and the slow relocation of labour into potential growth sectors is harmful to both labour productivity and labour supply. the loss of young people ’ s labour input, in particular, will have long - lasting consequences. restructuring is a factor behind the perhaps strikingly large and persistent employment consequences of deep recessions implies mismatches evidenced by outward shifts of beveridge curves as reinhart and rogoff ( 2009 ) point out, restructuring during deep recessions is a factor behind the large and persistent employment consequences of deep recessions. the need for relocating unemployed workers to different sectors of the economy implies mismatches on the labour market that will make unemployment more persistent in the years to come. these mismatches are already manifested by an outward shift of the euro area beveridge curve and by outward shifts of the beveridge curve in countries most severely hit by sectoral shocks. 1, 2 failure to reallocate young workers would lead to a lost generation given the magnitude of the youth unemployment problem, european economies cannot afford to fail in relocating the unemployed young workers to new jobs. failure in this task would imply a lost generation and all the individual and macroeconomic costs that follow with it. dual labour markets place young people in the frontline in a recession in many countries specific worker groups are affected by labour market institutions in different ways. this certainly applies to employment protection legislation. since the implementation of labour market reforms in the 1980 ’ s, efforts have been made to increase bonthuis, jarvis & vanhala ( 2012 ) find a significant shift in the euro area beveridge curve since the onset of the crisis, but considerable heterogeneity at the country level. at the extremes, country level differences include a significant outward shift in the beveridge curve for spain, an inward shift for germany. the beveridge curve is widely used to describe the cyclical state of the labour market and the efficiency of the labour market in terms of matching unemployed workers to job vacancies. it traces a negative relationship between unemployment and vacancy rates over the course of a business cycle, tracing the evolution of the economy from expansionary phases ( leading to lower unemployment and higher va