Notwithstanding the strong growth performance and favourable outlook for euro area economic activity, the exchange rate of the euro has continued to decline over the past few weeks and has thereby moved further out of line with the increasingly positive economic fundamentals of the euro area, as well as international balance of payments positions.
Leadership is required at both the national and European levels to implement the solution which is on the table. A similar, massive action is needed across the Atlantic. Restoring confidence in markets is the biggest contribution that the state can make to get the economy back on track. It is time to act. Thank you for your attention. BIS Review 148/2008  3