1. Conference on experience with the preparation of the euro
The experience with the euro and the importance of remaining competitive
José Marín Arcas
Head of Division Euro Area Macroeconomic Developments
Conference on experience with the preparation of the euro
Riga, 22 February 2013

2. Euro Area and German HICP (annual percentage changes)
Notes: (1) For Germany, national CPI is used until December 1998 and German HICP afterwards.
(2) For Germany the average 48 years before 1999 is also available and equals 2.8%.
Last observation refers to December 2012 for German HICP and January 2013 for euro area HICP.

3. COMPENSATION PER EMPLOYEE (Indices, base 2005Q1=100)
Sources: Eurostat and ECB calculations.
Latest observations refer to 2012-Q3.

4. NOMINAL DOMESTIC DEMAND (Indices, base 2005Q1=100)
Sources: Eurostat and ECB calculations.
Latest observations refer to 2012-Q3.

5. LABOUR PRODUCTIVITY PER HOUR (Indices, base 2005Q1=100)
Sources: Eurostat and ECB calculations.
Latest observations refer to 2012-Q3.

6. UNIT LABOUR COSTS PER HOUR (Indices, base 2005Q1=100)
Sources: Eurostat and ECB calculations.
Latest observations refer to 2012-Q3.

7. EXTERNAL BALANCE OF GOODS AND SERVICES (% of GDP)
Sources: Eurostat and ECB calculations.
Latest observations refer to 2012-Q3.

8. EMPLOYEES (Indices, base 2005Q1=100)
Sources: Eurostat and ECB calculations.
Latest observations refer to 2012-Q34 for Germany and 2012-Q3 otherwise.

9. CONCLUSION
If you don’t want to get into trouble and have to undertake a painful adjustment inside a monetary union, do not lose competitiveness