Adjustment continues...but not everywhere

At the end of an exciting week, just two interesting charts, stemming from the European Commission's almost undiscovered data treasure on cost and price competitiveness indicators.

The structural adjustment, Commissioner Olli Rehn mentioned in today's press conference, is indeed continuing. All four Eurozone peripheral countries (IR, GR, PT and SP) have experienced a significant catching up of their cost competitiveness positions vis-a-vis the rest of the Eurozone. However, there are two countries where the adjustment has not even started. Looks as if the Eurozone is heading towards its next big problem...