##pranational institution. economic policy deals with the other economic objectives. responsibility for the various areas of economic policy has largely remained with the member states, since these policies are best carried out at the national level in order to ensure that they are appropriately tailored to the specific characteristics and needs of the individual countries. • more specifically : o structural policies in the member states are supposed to seek to create flexible and efficient structures in product and labour markets with a view to fostering the growth potential of euro area economies and improving the adjustment mechanisms in emu ; o fiscal policies are supposed to ensure the sustainability of public finances, effectively limiting government deficit and debt ratios, thereby also ensuring that automatic fiscal stabilisers work effectively as an adjustment mechanism in the currency union ; and o wage policies should be compatible with trend developments in productivity in order to foster full employment and should take into account the overriding importance of wage flexibility as an equilibrating adjustment mechanism in the emu. • within the lisbon strategy, as refocused and reaffirmed by the european council in 2005, member states aim to gear national policies towards micro - economic flexibility and macro - economic stability. this would strengthen the capability of the euro area economy to swiftly re - allocate economic resources in view of exogenous economic shocks and improve its long - term growth prospects. the lisbon strategy and the peer surveillance of its implementation at the national level have raised the awareness among governments in european countries that structural reforms are decisive for remaining competitive in an increasingly global economic environment and to fully realising the economic potential of the emu. • significant progress in reforming labour market policies – especially in the areas of pension schemes, early retirement and part - time work – has been achieved over the last ten years in some european countries, contributing to the significant rise in the euro area employment rate, accompanied by a decline in the aggregate unemployment rate from 10. 6 % in 1996 to 7. 2 % most recently. the latest number is the lowest on record since the early 1980s, but should not give rise to complacency. • these encouraging developments show that past labour market reforms, immigration and wage moderation have helped to overcome some of the constraints on growth stemming from rigid and over - regulated labour markets. despite this progress, we are still a long way from having exhausted the potential for further increases in participation rates and employment. the unemployment rate is still unacceptably high and the employment rates, especially among young, female and older workers,

jean - claude trichet : conclusions of the g20 in seoul – interview in le progres interview with mr jean - claude trichet, president of the european central bank, in le progres, france, conducted by mr vincent rocken and published on 13 november 2010. * * * are you satisfied with the conclusions of the g20 in seoul? let me first of all say how delighted i am to be here in lyon, breathing my native air and soaking up the beauty of the city and its way of life. with regard to the g20, i took note of the communique stating that risks remain for the global economy and that there is a need for extreme vigilance. i share this view entirely with the heads of state and government. four further conclusions are particularly important to my mind. first, a commitment to pursue macroeconomic policies aimed at ensuring sustainable growth, including rigorous fiscal measures in countries where these are necessary. second, the need to implement ambitious structural reforms to foster growth and employment. third, the approval of the banking supervision reforms prepared by the basel committee. and fourth, a commitment to enhance the flexibility of the exchange rates of certain currencies which are not sufficiently flexible. when france takes over the presidency of the g20 for a year, what guidelines and actions should it focus on at the financial level? the global governance of the g20 is a long - term undertaking. nothing is settled, and the french presidency will need to deepen and strengthen the main avenues that are currently the subject of global consensus. this is already a huge task. but the greatest responsibility that i see for the future presidency is the correction of large external imbalances at the global level ; such a correction is crucial if we are to avoid another major crisis in the future. and in seoul the g20 explicitly asked the french presidency to work on criteria for measuring these external deficits and surpluses. the financial crisis is over, but its effects can now be felt in terms of the economy. do you believe that all the necessary lessons have been learned in order to avoid a new global crisis when one sees measures here and there that are perceived as protectionist, in particular in the united states and china? we are in the midst of reflecting at the international level on the lessons to be learned from the crisis. this is a considerable task and it is being undertaken by the whole of the international community, including emerging market economies. it will take some time. for example