Is there a restoring force for cost and price competitiveness in the euro zone?
For the euro zone to function well, labour costs (prices) in the countries whose cost (price) competitiveness is stronger than the euro-zone average must increase faster than those of the zone as a whole . Likewise, labour costs (prices) in the countries whose cost (price) competitiveness is weaker than the euro-zone average must increase slower than those of the zone as a whole . Whe n we look at the four largest euro-zone countries, we see that there have been adjustments via costs or prices: In Germany from 2000 to 2008, but not in the recent period; In France and Spain; But not in Italy .