This is why the ECB and the Eurosystem go to great lengths to explain the benefits of bold reforms. Germany, which has on occasion been called “the sick man of Europe”, has once again been hailed as the world’s top exporter - and this despite the appreciation of the euro. What lessons can the other countries in the euro area draw from this?
As regards exchange rates, let me be clear: following the meeting of the Governing Council on 13 January, I confirmed our opinion, which we expressed when the euro rose sharply, namely that such moves are unwelcome and undesirable for economic growth. Furthermore, two major factors may explain the differences between member countries’ external accounts: the dynamism of domestic demand and cost competitiveness.