Indeed, those Central and Eastern European economies that were outside the euro area but pegged to the euro underwent sharper adjustment (Gros and Alcidi 2013, Lane 2016). The limited role for real exchange rates in the external adjustment process for advanced economies during this period suggests that the importance of the exchange rate regime as a determinant of macroeconomic outcomes might sometimes be overstated.
A consistent and speedy implementation of the RRF plans geared towards climate and digital transitions remains crucial. The war in Ukraine highlighted the importance of energy independence. Investing into developing renewable energy sources not only reduces geopolitical energy vulnerability; large-scale and ambitious green investment programmes also help offset the negative effects of automation – the loss of jobs and growing regional inequalities.