This architecture rests on three pillars: a stabilityoriented monetary policy, sustainable public finances, and growth- and competition-oriented structural policies. As for the third pillar, the Lisbon strategy adopted in 2000 with the aim of creating a modern and competitive economy seems to be finally bearing fruits.
However, the observed persistent divergences in unit labor cost growth and inflation in a number of euro area countries clearly point to increasing risks of further competitive losses and potentially costly real economic adjustment.