European Economy. Annual report on the euro area 2006.

Abstract

Membership of the euro area strengthens thedegree of economic interdependence betweenMember States through the existence of a singlemonetary policy and by fostering closer trade andfinancial ties and encouraging a closer coordina-tion of economic policies. In view of this interde-pendence, euro area members face economic chal-lenges which are related to, and in some cases moreimmediate than, those confronted by all MemberStates of the European Union (EU).