Ten year government bonds in the Euro area yielded 3.54 , while the Euro area inflation rate was 1.9 .

The EMP s central goals were to advance a comprehensive partnership and political reform, and to create a common area of peace and stability, together with a Euro Mediterranean free trade area.

Moreover, Sarkozy is seeking to intensify cooperation for development in the whole Mediterranean area.

Inflation in the euro area was then slightly above 2 .

Enlargement of the euro area promises to spur further financial integration.

The problem is imminent in North America, the Euro Area, and Japan.

They must recognize the impact that national economic policies have on the euro area as a whole, and thus discuss and coordinate economic programs at the euro area level.

Given the exposure of some euro zone states such as Austria, this crisis will also affect the euro area directly.

So are concerns about the effect of further enlargement of the euro area.

The current financial assistance arrangement with Greece will expire on 30 June 2015 The euro area authorities stand ready to do whatever is necessary to ensure financial stability of the euro area.

Third, the Euro area is about as open to international trade as the US.

The technical conditions required for the Single Euro Payments Area (SEPA) have been met.

Some observers saw a risk of sustained deflation in the euro area as well.

Also for the euro area, the Ifo Economic Climate index registered a dramatic decline.

The ECB has provided essentially unlimited amounts of liquidity to euro area financial systems.

The Mediterranean Crucible

The Mediterranean Reborn

The result is that the vision of the official Euro Mediterranean Policy (EMP) has lagged far behind its original goals.

Fears of euro area deflation soon vanished and an incipient recovery started later in 2003.

Thus, the voting system is sufficiently robust to accommodate up to 27 euro area members.

The difference with the largest debtor in the euro area, Italy, was 68.2 percentage points.

After the advent of the euro, the eurozone s Mediterranean members enjoyed a lending boom while piggybacking on Germany s low interest rates.

Restaurants overlooking the Mediterranean.

Third, the EMU s stability oriented macroeconomic framework has better prepared euro area countries for economic storms.

Divergences between euro area economies in terms of growth and inflation have been a persistent challenge.

Austria's economy performed solidly throughout the 1990s, roughly in line with EU and Euro Area averages.

The situation became so heated that some respected observers even proposed creating a northern euro for the region around Germany, and a southern euro in the Mediterranean (where France would fit was unclear).

Indeed, only Slovenia has been admitted to join the euro area in 2007, the earliest possible date.

Being outside the euro area, their currencies would fall, undermining growth in purchasing power and living standards.

For this, thank the often abused Euro, for it has anchored the once profligate nations of the Mediterranean in German style monetary discipline.

Initiatives such as the Euro Mediterranean Partnership and the European Neighborhood Policy need sustained political engagement and resources if they are to work.

Enjoy Mediterranean cuisine and culture

BRUSSELS The euro area confronts a fundamental crisis that attacks on financial speculators will do nothing to resolve.

This implies the need to separate national debt management in the euro area from short term electoral constraints.

The only options are then to slap draconian controls on the banking system or join the euro area.

Instead, the euro achieved what it was meant to achieve the crisis was contained, because it could not inflict damage on foreign exchange markets within the euro area.

Exports outside the Euro area claim only 15 16 of Europe's total output, and will be even less when (and if) Sweden and the UK join the Euro.

Given the exposure of some euro zone states such as Austria, this crisis will also affect the euro area directly. To wait and see is, therefore, the wrong strategy.

LUXEMBOURG Much dedication and energy are currently being devoted to institutionalizing a crisis management mechanism for the euro area.

It is European countries outside the euro area, still with their own currencies, that have suffered the gravest difficulties.

The recently rising euro also has helped keep down European long term interest rates a key determinant of economic activity as inflationary expectations deteriorated somewhat in the euro zone area.

Leaders must start living up to the responsibilities that come with sharing a single currency. They must recognize the impact that national economic policies have on the euro area as a whole, and thus discuss and coordinate economic programs at the euro area level.

The euro zone is a vast area comprised of different nations with different cultures, histories, economies, politics, and so forth.

The experience of current euro area members thus far suggests trade gains of roughly 10 just from the single currency.

That sea is called the Mediterranean Sea.