  Forecast reductions in unit labour costs for 2012–13, together with projected price developments, should lead to a marked improvement in competitiveness, thereby contributing to export growth and import substitution.
So, the background is encouraging. In at least two respects, the euro area economy is currently less vulnerable than the US: First, Europe has a positive rate of personal savings, serving as a buffer against unexpected contingencies, such as a sharp decline in equity prices.