Press Release: EU Economy 2006 Review: euro-area countries need to adapt better to life in monetary union

The experience of the last eight years shows that many euro-area countries have not yet fully adapted to life in a monetary union with a single monetary policy and currency. This is the conclusion of the Commission Communication on “Strengthening the euro area: key policy priorities”, adopted on the occasion of the EU Economy 2006 Review. More therefore needs to be done to improve growth performance and cement cohesion within the euro area in order to make the benefits of a single currency clearer to its citizens. Structural reforms must be accelerated and public finances more firmly consolidated to create the necessary margin for manoeuvre to weather the next economic downturn. Last but not least, better governance of the euro area is needed, both to ensure closer coordination of national budgets and mutually-enhancing reforms, and to give the euro area a stronger and clearer voice in the world.