The adoption of the euro by 12 European Union (EU) countries represented a major step forward in the pursuit of economic integration: financial markets have deepened and competition has been stimulated. Business cycles have become more synchronised and structural unemployment has declined. However, the protracted period of sub-potential growth since 2001 has exposed major policy challenges. Policy should focus on boosting non-inflationary growth and strengthening resilience to shocks, fostering cohesion and ...