Sir Dwight Venner, Governor of the Eastern Caribbean Central Bank, captures these effects quite vividly: “Almost every year, we [St. Lucia] have a hurricane season, which can destroy the country’s GDP. In some countries, it can also lead to high debt levels. Their infrastructure is destroyed before they paid for it, so they borrow again.
By reducing the number of key global players, the emergence of the euro area in principle simplifies international cooperation, as it facilitates the exchange of views and the formulation of common understandings on economic and financial issues.