Real convergence in the euro area: evidence, theory and policy implications

Abstract:

While central and eastern European economies have been moving towards the EU average since 1999, the initial euro area countries have made little progress towards convergence over that period, due to weak institutions, structural rigidities, low productivity and other factors.

This article is part of the ECB's Economic Bulletin No.5 of 2015.

ECB: Publications: Economic Bulletin https://www.ecb.europa.eu/pub/economic-bulletin/html/index.en.html

EurActiv, 30.07.15: ECB 'disappointed' with lack of convergence in euro area http://www.euractiv.com/sections/euro-finance/ecb-disappointed-lack-convergence-euro-area-316696

Kathimerini, 29.07.15: ECB disappointed eurozone has not brought founding economies closer http://www.ekathimerini.com/200046/article/ekathimerini/business/ecb-disappointed-eurozone-has-not-brought-founding-economies-closer

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