To date, the significant foreign portfolio inflows, combined with a favourable outlook for the domestic economy, have enabled the country to finance a relatively large current account deficit, which, in turn, was to a large extent driven by investment expenditure and infrastructural developments – hopefully efforts from which the country would benefit in years to come.
First and foremost, prospects for price stability in the euro area remain favourable, thanks not least to the success of the ECB: whoever would have thought two or three years ago that the launch of the euro would be as smooth as it has proved to be?