The authorities have undertaken numerous structural reforms since the last OECD Economic Survey was published in June 2007. Many of those reforms go in the direction of the recommendations offered at that time, while other reforms conducive to social dialogue have also been put in place. This chapter reviews the progress that has been made in improving the functioning of the labour market, addressing the problem of demographic ageing and making the education system more effective. These efforts will have to be pursued and the momentum of reform maintained, pressing ahead even further in some fields while perhaps changing course in others. The greatest challenge is to raise the employment rate in order to restore the health of public finances and sustain rising living standards.