Making European Reforms a Success on the Ground

Europe’s medium-term growth prospects remain subdued. There is broad recognition that growth need not be this low, and there is also a common understanding of what is standing in the way. Yet, decisive policy action has been lacking. One reason is that there is uncertainty around the size of the gains and how they are distributed. This Note advances the debate by estimating the potential of policy packages aimed at closing structural policy gaps through national and single-market reforms, and showing how they would play out at the regional (within-country) level.