Press Release: Quarterly report on the euro area: Special report on competiveness divergence within the euro area

The present QREA provides a comprehensive review of developments in price competitiveness since the launch of the euro. Competitiveness imbalances have built up within the euro area, increasing the exposure of some Member States to the financial turmoil. While the economic crisis is projected to lead to some adjustment in external imbalances, re-balancing competitiveness within the euro area requires a better use of fiscal policies, more flexible product and labour markets, including increased competition in the services sector, to increase productivity and lower prices to the benefit of employment.