Current Account Imbalances Within the Eurozone

Widening Current Account imbalances were a key feature of the run-up to the global financial crisis. Within the European Monetary Union, large surpluses and deficits emerged among member countries. The imbalances were initially viewed as evidence of the success of the Euro, but they continued to grow and contributed to the recent financial crisis. The problem of imbalances is still with us today and could hamper future growth in the deficit countries