A GROWING competitiveness gap threatens the stability and even existence of the Eurozone, European Central Bank President Mario Draghi warned yesterday.
“Increasingly larger and persistent current account deficits have resulted from significant losses of national competitiveness,” Draghi told a conference in Paris.
“These current account imbalances within the euro area should be a source of concern for policy makers.”
Draghi noted that wage costs had risen 2.5 times as quickly in those Eurozone countries which were running a balance of payments deficit compared with those in surplus.
“Unless we proceed with our structural reforms all together, it will be difficult to keep the area together,” he said.