A single monetary policy implies that lasting divergences in unemployment levels and real growth trends are caused predominantly by different economic structures and economic policies in individual countries. Moreover, income levels can more easily be compared across countries which use the same currency. Monetary Union thus makes it easier for citizens to identify best practices in other countries.
Beyond short-term developments, we expect that wage moderation in the euro area will continue and that demand pressure on prices will remain subdued, although there are some grounds for concern about forthcoming wage negotiations. It is therefore particularly important to point to the indispensable role of continued wage moderation in fostering employment and maintaining a favourable outlook for price stability.