Considerable progress has been achieved, as reflected in the significant rise in employment growth. Now the challenge is to also raise the level of productivity growth in all euro area countries. If this challenge is not met, it is hard to imagine that Europe will be able to achieve a higher growth path and to keep the wealth of its citizens.
Monetary Union has been effective – and very successful – in supporting growth through a credible monetary policy which creates a stable macroeconomic environment and has lowered financing costs for a number of euro area countries through a reduction of risk premia. EMU, moreover, gives impetus to European integration, particularly in financial markets, and to a further reduction of the barriers to competition.