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Chapter 4: Restoring Convergence between Member States in the EU and EMU ....203
1. Introduction ...............................................................................203
2. Productivity and employment growth: THE key to long-term
convergence in the EU ..................................................................204
2.1. Convergence trends in the EU since the mid-1990s ................................................204
2.2. Structural factors impacting on employment and social divergence ....................................213
2.3. Conclusion: promoting upward convergence by balanced adjustment efforts and strengthening human capital
formation ................................................................................218
3. Convergence within the EU, a specific challenge? .....................................218
3.1. The specificities of a monetary union ...........................................................219
3.2. Cross-border externalities arising from employment and social developments linked to economic shocks
in a monetary union .......................................................................220
3.3. The contribution of employment and social policies to convergence in the EU ............................227
4. Conclusion ................................................................................232
Annex 1: Price dynamics in the euro area ..................................................234
Annex 2: Member States’ overall capacity to promote productivity growth:
2013–14 ranking ..................................................................236
Annex 3: Between and within zones convergence .........................................238
References ....................................................................................243
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1. Introduction ...............................................................................203
2. Productivity and employment growth: THE key to long-term
convergence in the EU ..................................................................204
2.1. Convergence trends in the EU since the mid-1990s ................................................204
2.2. Structural factors impacting on employment and social divergence ....................................213
2.3. Conclusion: promoting upward convergence by balanced adjustment efforts and strengthening human capital
formation ................................................................................218
3. Convergence within the EU, a specific challenge? .....................................218
3.1. The specificities of a monetary union ...........................................................219
3.2. Cross-border externalities arising from employment and social developments linked to economic shocks
in a monetary union .......................................................................220
3.3. The contribution of employment and social policies to convergence in the EU ............................227
4. Conclusion ................................................................................232
Annex 1: Price dynamics in the euro area ..................................................234
Annex 2: Member States’ overall capacity to promote productivity growth:
2013–14 ranking ..................................................................236
Annex 3: Between and within zones convergence .........................................238
References ....................................................................................243
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