Portfolio equilibrium would suggest that the appreciation must be enough to create the expectation of a subsequent depreciation, at a rate to balance the higher expected returns on domestic, compared with foreign, assets, i.e. to balance the differential between the domestic interest rate and the foreign rate.
Thanks to the success of European integration, the threat of war has become a memory of the past for many Europeans, in particular the younger generation. This makes it all the more urgent to develop a renewed vision of the kind of Europe we want and indeed need – a vision that is easily understood and shared amongst EU citizens.