At best, peripheral countries of the eurozone have completed the restructuring of economies in half revealing report Moody's Investors Service, quoted by Bloomberg.
Economic imbalances that caused the debt crisis are still there and that is why structural reforms must continue, says the analysis of the rating agency.
"Adjustments, both in the periphery and in the core of the Eurozone, are occasionally sensitive," says a report published today by the agency. "The process, however, at best is half finished."
Politicians from affected peripheral countries are trying to restructure their economies to generate growth, they need to pay their debts. The European Union (EU) and International Monetary Fund (IMF) offered support to Greece, Ireland, Portugal and Spain for at least 393 billion.
Moody's reported some progress in terms of trade balance and competitiveness of labor, but stresses that governments can not afford to delay reform. The report does not mention credit ratings of individual countries.
"The crisis that Sweden and Finland have experienced in the early 90's, taught us that solving the imbalances caused in most cases by credit bubbles in the private sector, may take several years," says the report. "Structural reforms are essential to achieving sustainable results."
Since the crisis the price of labor in Spain is down 5.9% and in Greece - by 7.8%, while in Ireland - by 13.7%. This helps exports and economic growth at a time when governments are trying to implement budget savings.
So far Italy has not managed to reduce its trade deficit by adjusting the price of labor and higher competitiveness.
"Improving the competitiveness of peripheral countries of the euro zone is mainly due to improved efficiency due to the fact that employment decreases faster than production levels," said the analysis.