Among frequently mentioned disadvantages of the euro adoption belong the ongoing process of catching up with EU levels, the insufficiently synchronised business cycles and the loss of the exchange rate stabiliser. Along with this, we get the common monetary policy which is doubtful to fit to all, especially to a country with structural changes still ahead.
And this circle is potentially vicious: if low potential growth leads to lower investment, then it further lowers potential growth. A policy mix to lift investment demand This is where the next part of a comprehensive approach comes in: getting the policy mix right on the supply side of the economy to lift investment demand.