Labour reform, long demanded by economists, will aim to give more flexibility to collective bargaining by improving competitiveness.

The stiff regulatory backdrop and lack of labour reform 'almost make the euro area un-investable'.

He squeezed through some labour reforms but failed to deliver shake-ups of the lethargic legal system and bureaucracy.

Another immediate priority will be introducing deep-seated labour reforms to improve competitiveness.

While talks with the eurozone have moved forward in recent weeks, substantive differences remain over labour reforms, pension cuts and added tax hikes.