Fit with the euro - Challenges to improve the economic performance of European Monetary Union
The business community is adamant about monetary union and measures its successes. Companies operating in the euro area enjoy a market of 318 million people immune from exchange rate risks, profit from a credible central bank delivering price stability and favourable financing conditions across this wide market, and do business with a currency that is extensively used by international financial markets and in transactions with the rest of world. However, there are still important obstacles to fully exploiting the benefits of the euro, and these are reflected in a modest growth potential of the euro area economy and in growing competitiveness imbalances across countries. The report presents key policy recommendations to improve adjustment dynamics in monetary union in the field of fiscal, wage, competition, innovation and internal market policies, and sets out the responsibility of various policy makers.