The report highlights declining productivity, bureaucratic obstacles, weak investment, and a growing skills shortage exacerbated by an aging population. It criticizes lengthy planning and approval processes that contribute to investment delays in energy, digital, and transport infrastructure, particularly affecting municipalities facing financial constraints. Additionally, high taxes on labor reduce incentives for employment, especially for secondary earners. The OECD recommends streamlining planning procedures, enhancing municipal capacities, and reforming the education system to address the skills gap.