Dealing with macroeconomic imbalances in a currency union Now, I would like to discuss the second topic selected for our exchange of views, namely macroeconomic imbalances in the euro area. Of course, divergences of economic developments are a normal feature within a monetary union. Such divergences can also be observed on the other side of the Atlantic.
But they should not become of a persistent and structural nature. Unfortunately, very large imbalances were allowed to accumulate over recent years in several European countries. These imbalances stemmed from different sources: insufficient fiscal discipline, financial excesses, failure to implement structural reforms especially, but not exclusively, in the labour and product markets and significant competitiveness losses. All of this necessitates urgent and resolute adjustment.