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.
On the one hand it is clear that Germany’s domestic demand has been less dynamic than that of the other countries, including France. Consequently, its imports have also been less dynamic.