To understand the sharpness of the slowdown that still gripped the economy at the time, we have to begin with the period of exceptional performance in the second half of the 1990s.
However, the euro area as a whole has a balanced current account position. Global fiscal imbalances remain significant, with a marked degree of heterogeneity between advanced and emerging economies. Consolidation efforts required to bring public finances to a sustainable path are a key priority for advanced countries. Efforts made to adjust these imbalances remain clearly insufficient.