Reforms are not only in the individual interest of euro area countries: they are also in the collective interest of the union, because they will help to restore its stability and cohesion. 2  BIS central bankers’ speeches  Recent progress in euro area convergence So how can these severe divergences within the euro area be addressed?
Certainly, there has been some recent progress in the convergence of relative costs and of internal and external imbalances. This reflects to a large extent stronger policy action in the fields of fiscal consolidation and structural reforms as well as deleveraging in the private sector.