The trend of slow growth is not only affecting the euro area, but all developed countries. In Europe, it is also linked to insufficient technological innovation and a lack of dynamism and openness in the economy, and even in societies themselves. Isn’t the single currency partly to blame for the weak growth? No, not the euro itself. It has even provided protection.
As regards growth differentials, the 1990s witnessed a significant convergence of real GDP growth rates, as preparations for the euro got underway. National policies oriented towards price stability and budgetary consolidation as well as moderate wage growth led to a marked synchronisation of business cycles.