Author(s): Directorate General for Economic and Financial Affairs (ECFIN). European Commission
This special issue provides a comprehensive assessment of the impact of the crisis on external divergences in the euro area: After a decade of steady divergence, the global economic crisis has triggered a partial rebalancing of current accounts in the euro area. The narrowing of current account differences between Member States has both structural and cyclical causes and could be partially reversed with the recovery. It has so far been associated with only modest correction of past divergence in price competitiveness.
As a result, significant adjustment needs continue to exist and call for a comprehensive policy response tailored to the specific needs of each Member State.
|pdf: KC-AK-10-001-EN-N. Paper: KC-AK-10-001-EN-C. (online)|
|ISSN pdf: 1830-6403. Paper: 1725-5759. (online)|
The Quarterly Report on the Euro Area is written by staff of the Directorate General for Economic and Financial Affairs (DG ECFIN). It is intended to contribute to a better understanding of economic developments in the euro area and to improve the quality of the public debate surrounding the area's economic policy.
The views expressed are the author’s alone and do not necessarily correspond to those of the European Commission.
Comments on the report would be gratefully received and should be sent to: ECFIN-QREA@ec.europa.eu