Better trained employees and more efficient production structures can make a contribution. The functional viability of the labour market is also a key starting point. It is precisely there that relatively many reforms have been undertaken to make labour more flexible. Correct, and these reforms have also had an impact.
Hence, even if inter-euro area current account balances do not matter because of the same currency and will not trigger exchange rate crises, at the euro area level, internal current account imbalances are relevant for policy-makers, as one of the major indicators of the fundamental functioning of their economies. 5.