And, on the other hand, the introduction of the euro has considerably heightened what we call “Reformbereitschaft”, that is not exactly reforming zeal, but at least the readiness to carry out reforms. Thus, under the euro framework Germany has become more attractive as a business location. The same holds true for our fellow euro countries that adopted the euro.
Now, what about the United Kingdom? Are there gains to be had from joining the euro area? Yes, there certainly are. The United Kingdom’s economy is closely linked to the continental economies in Europe in terms of trade, in terms of foreign direct investment and in terms of portfolio investment.