The adoption of a single currency in Europe will most likely have made economic structures in Europe more homogeneous. In addition, since the early 1990s, Europe has undertaken structural reforms that have contributed to the flexibility of product and labour markets.
Second, although labour is much less mobile between European countries than between US states or regions, the European Member States nevertheless have some fairly powerful (fiscal) stabilisation mechanisms at their disposal, in case countries are affected by shocks. In contrast to the United States, the 'federal budget' of the European Union is very small and fiscal policy is a national prerogative.