Because these causes of a diverging evolution of ULCs are of a structural nature, and their effects on ULC growth and competitiveness positions can persist, we need to monitor and assess their implications carefully. Should we be concerned by what we observe in certain euro area countries?
Yes, because persistent ULC growth in excess of the euro area average can be expected to give rise to sustained inflationary pressures and losses in competitiveness, with adverse effects on the real economy. What does the evidence tell us?