This 2005 edition of OECD's periodic review of the Euro Area economy systematically reviews economic developments and makes policy recommendations. This issue concentrates on growth performance and resilience. The first chapter presents an overview of developments and challenges. The second chapter concentrates on monetary policy and exchange rates. The third chapter examines fiscal issues and the fourth examines means for driving growth including enhancing the functioning of labour markets, integrating services markets, fostering innovation, and structural reform.