BIS central bankers’ speeches  1  On the other hand, a large currency area represents a challenge for enterprises, too. They are exposed to stiffer competition on account of the larger number of market players. However, from a macroeconomic point of view, greater competition is to be welcomed, because it spurs innovation and promotes necessary reforms.
Against this backdrop, how are we to explain the lack of competitiveness in some euro-area countries? This does not primarily have to do with the single currency. The causes are to be found, rather, in excessive credit growth, deficient labour market regulation, and pay increases not backed by productivity growth. These are factors which were also clearly a national rather than a supranational responsibility.