This is the reason why strengthened surveillance at the euro area level is needed to prevent economies from falling behind by losing competitiveness and becoming subject to macroeconomic imbalances. I have already mentioned developments in prices, costs and wages, current account deficits and indicators of private and public sector indebtedness as well as countries’ external debt position.
For many years, I have strongly advocated in various European fora that the accumulation of substantial losses of competitiveness, as revealed by developments in unit labour costs among other indicators was not sustainable. Therefore, I trust that this is where a surveillance framework aimed at preventing and correcting macroeconomic imbalances has to start.