In effect, the single currency was founded on an unbalanced structure, comprising a solid monetary pillar and a weak and underdeveloped economic pillar. The monetary pillar has been successful in carrying out its role: the euro has won its position as an international currency and price stability has been achieved.
In contrast, the insufficiencies of the economic pillar have allowed inadequate economic policies in certain Member States, unsustainable public finance positions, the accumulation of significant macroeconomic imbalances and large divergences in competitiveness. A posteriori, one may say that not only was the euro area’s institutional framework insufficiently robust, but also its implementation was weak in the first years of the EMU.