Several potential concerns preceding the launch of the euro have been dispelled. At the same time, more must be done to increase the flexibility and adaptability of euro area economies. Structural reforms are essential to facilitate and speed up the endogenous corrections of deviations of economic parameters.
Reforms will also enhance growth potential for the euro area as a whole as well as reinforcing its resilience in the case of shocks. 8  BIS Review 64/2006  We also need to monitor and fully understand the factors behind the persistence of diversities among euro area countries: this persistence is in some cases fully justified.