Income convergence in eurozone faltered before euro, research finds

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The convergence between higher- and lower-income countries in the euro area started to fail before the introduction of the single currency in 1999, a research paper published by the European Central Bank shows.

A lack of productivity growth hampered a sustainable long-term economic expansion resilient against external shocks, the authors say. The research concludes joining the eurozone is not enough to foster upward convergence in the continent, and better governance and institutional standards

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