Continuing a Deutsche Bank Research series on Eurozone competitiveness, it is argued that the focus should not be solely on prices and costs, but also on the value-added structure of the respective economies, their innovative capacity and degree of economic freedom. This non-price competitiveness is partly a result of historical developments and partly a result of good economic policy. Proper infrastructure, reliable institutions and efficient markets can create a sensible environment that is conducive to business success. The Eurozone economies also differ from one another in this regard – - and in some cases appreciably.
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