RUDN Journal of Economics (Dec 2016)
COMPETITIVENESS WITHIN THE EUROZONE: CURRENT STATE AND MAIN INFLUENCE FACTORS
Abstract
This article investigates the directions for the development of national competitiveness in the Eurozone. Ensuring macroeconomic stability in the monetary union require the improvement of national competitiveness. A large divergence in competitiveness constraints deeper European Integration and causes problems for the survival of the Eurozone in the long term. The global financial crisis of 2007- 2009 and the European debt crisis increased economic imbalances in the Eurozone. The undertaken anti-crisis measures were not able to restore competitiveness. The national positions in the Global Competitiveness Index vary significantly in the monetary union. Moreover, higher unit labour costs are not always associated with higher labour productivity. Increases in unit labour costs and consumer prices did not translate in an proportional increase in export prices in many countries.
