Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/30517 
Year of Publication: 
2009
Series/Report no.: 
CESifo Working Paper No. 2639
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
Low international competitiveness of a set of euro area countries, which have become evident by large current account deficits and rising risk premiums on government bonds, is one of the most challenging economic policy issues for Europe. We analyse the role of private restructuring and public structural reforms for the urgently needed readjustment of intra-euro area imbalances. A panel regression reveals a significant impact of private restructuring and public structural reforms on intra-euro area competitiveness. This implies that private restructuring and public reforms are rather than public transfers the best way to preserve long-term economic stability in Europe.
Subjects: 
structural reforms
international competitiveness
current account imbalances
European Monetary Union
euro area
dynamic panel estimation
interaction term
JEL: 
E24
F15
F16
F32
F33
Document Type: 
Working Paper
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