This is all the more true of a monetary union, where member countries are no longer able to use country-specific monetary and exchange rate policies to address country-specific shocks. In such an environment, other adjustment mechanisms are needed such as price and wage flexibility and factor mobility. Structural reforms can contribute to a better functioning of these adjustment mechanisms by fostering integration and competition.
The relationship between integration, competition and the single currency works in both directions. The euro itself has already contributed to more integration and competition and will continue to do so in the future.