Structural policy affects economic structures and the choices made by households and businesses. Structural policy measures influence the length of working careers and are aimed at increasing the labour supply and productivity. Measures can also affect, among other things, taxation, social security, the pension system, labour policy, regulations impacting the operating environment for businesses, and the reform of public services and administration. Structural policy affects the economy in the long term.
Structural policy reforms can influence the sustainability of public finances, thereby reducing the need for direct adjustment of revenue and expenditure. Employment-increasing reforms, by which benefit recipients become taxpayers, are the best means of improving the sustainability of public finances. They simultaneously impact both general government revenue and expenditure.
Senior Financial Adviser
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