Otherwise, the single monetary policy of the euro area might not be suitable, thereby bearing the risk of boom-bust cycles and high inflation volatility in the country concerned. All this underlines the importance of a credible euro adoption strategy.
•  Policy reforms may have non-linear effects related to the quality of political and economic institutions. Therefore, a broad range of institutional factors need to be taken into consideration in a process of reform. •  Reforms in different areas interact. These synergies must be taken into account to maximize the impact on productivity growth.