The main preconditions were a number of slowly emerging disequilibriums on the real side of the economy, accompanied by suboptimal behavior and regulation in the financial sector. These real factors include, for example, the global imbalances that led to the “paradox” financial flows from emerging to advanced economies.
At the same time, comprehensive and ambitious structural reforms in product and labour markets are warranted to lift the euro area’s growth potential, 2  BIS central bankers’ speeches  improve its adjustment capacity and reduce the high unemployment facing many euro area countries today.