Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/121871
Authors: 
Breuss, Fritz
Year of Publication: 
2009
Series/Report no.: 
FIW Policy Brief 1
Abstract: 
At its 10th anniversary the EMU had to stand the baptism of fire caused by the „Great Recession“ 2009. By and large it mastered this test. The introduction of the Euro, however, has brought to light the latent weaknesses in competitiveness of some member states of the Euro area, consisting up to now mostly of old EU member states. Shortly after the EU enlargement in 2004 and 2007 Cyprus, Malta, Slovakia and Slovenia introduced the Euro. Out of 27 EU member states already 16 countries belong to the Euro area. In the near future one can expect a further enlargement of the Euro area. The permanent diversion of competitiveness between the new and the old EU member states could, however, evolve into a big problem with respect to the coherence of the enlarged Euro area, pursuing a common monetary policy. Here we focus particularly on the differing competitiveness - measured by the relative unit labour costs or the real exchange rates - within the enlarged union. Conclusions are drawn with respect to the current "Great Recession".
Subjects: 
EMU
International Competitiveness
Great Recession
JEL: 
E52
F15
F31
F41
Document Type: 
Research Report

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