These distortions hamper the smooth functioning of the single monetary policy stance. 5  8  Samuelson, P. A. (1994), Facets of Balassa-Samuelson Thirty Years Later, Review of International Economics 2 (3): 201–226. BIS central bankers’ speeches  Within the given framework, the implementation gap must be closed to resolve the confidence crisis that the euro area currently faces.
Most of the above mentioned proposals have been decided already. As soon as possible the new governance rules must be applied completely and rigorously. Moreover, as stated earlier, factor mobility in particular on labour markets is an important adjustment mechanism. Labour mobility within the euro area works rather smoothly at the lower and higher skill ends.