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However, one can also see that the evolution of labour costs in these countries was similar to what happened in Euro centre countries such as France and Netherlands and to countries which aren’t members of the Euro like the USA, UK and Iceland. Curiously Iceland was the country that lost more competitiveness relative to Germany since 1999. These facts make it hard for me to see the Euro as the cause of loss of competitiveness relative to Germany or for the current problems the periphery faces..
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