Yet for many other questions – such as overall competitiveness developments – we need to have a look at the effective exchange rate. In the euro area, exchange rate developments are regularly monitored and assessed by the ECB. These assessments are shared, as appropriate, with euro area finance ministers and the Commission in the Eurogroup.
Since the start of the euro, there have been no disagreements at the technical level either on the assessment or on the action to be taken. 2. Discussions with the other major partners. This is key, since the effectiveness of policy action critically depends on it being coordinated with other relevant countries. The euro area conducts such discussions at three levels.