On the one hand, greater competition and the implementation of structural reforms in product and labour markets under EMU means that changes in supply and demand for various skill groups will be reflected in a widening of wage differentials between various types of labour in the euro area countries.
In principle, a borrower defaults when he is either unable to pay his creditors because of inadequate cash flows from his business or the market value of his assets falls below the value of his liabilities which hinders his capability to 1Remarks delivered by Shri M. Rajeshwar Rao, Deputy Governor, Reserve Bank of India – April 30, 2022 - in the International Research Conference on Insolvency and Bankruptcy held at IIM, Ahmedabad.