There is virtually no chance any time soon of these countries regaining competitiveness against an ever more competitive Germany.

Volkswagen, Brazil's top selling automaker, is trying to cut costs and regain competitiveness as sales have slipped from greater competition and an economic slump.

But they served to allow the Italian economy to regain competitiveness with other European economies where inflation was lower and productivity growth greater.

The German economy, once a laggard in the euro area, has regained competitiveness in the last couple of years by sacrificing higher wages.

An extension of three to five years, they add, would give the domestic industry the time it needs to regain competitiveness.

And lagging areas would no longer have the expedient of allowing their currencies to depreciate in order to regain competitiveness.

Germany's real wages will grow again this year and consumption is picking up which will help the other Eurozone economies to regain competitiveness.

The country serves as a cautionary tale for those who argue that Greece could regain competitiveness by reintroducing its currency.

But how countries like Italy and Greece can regain enough competitiveness, even if they can sort our their debts, is very hard to see.

The only way in which we can possibly regain competitiveness would be to drive wage rates down to their levels.