The second point with respect to policies appropriate for avoiding future imbalances relates to structural policies that are essential to promote productivity growth and to enhance the flexibility and competitiveness of the economies in question. In many cases, the restoration of competitiveness does not depend only on correcting relative costs and prices.
In view of the structural shock of the import penetration emanating from very low-cost producers, what is necessary is to increase productivity and to change the productive structure. To ensure a smooth functioning of Monetary Union, the whole set of necessary policies should be employed in a consistent manner, both across individual policy areas and across countries.