If capital flows have been liberalised and the supply of capital is arguably close to being perfectly elastic within the Eurozone, the same cannot yet be said about the mobility of labour factors.
This remains a serious issue, given that labour mobility is a crucial adjustment mechanism for macroeconomic shocks demographic, demand-driven, or even technological affecting European economies in different ways and at different times (so-called asymmetric shocks). [extract]
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DG ESA