A day rarely passes without the euro area being urged to push ahead with structural reforms to boost its dismal growth rate. This debate tends to focus on supply-side measures, such as making labour markets more flexible. These changes would be welcome, yet a big part of Europe's problem is weak demand, because households save so much. Awkwardly, labour-market reforms that reduce job protection or social benefits are likely to depress spending in the short term. One way to boost both economic efficiency and spending in the euro area would be to shake up its over-regulated mortgage markets.
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