And therein lie the key economic arguments in favour of the euro. The path to monetary union offers Europe major new opportunities. In a Europe which is heading towards a single market, and in a world which is converging in economic terms, a large single monetary area offers major advantages -- always provided the euro remains enduringly stable.
Since our last FSR in December, the global macroeconomic environment first deteriorated but then improved. The US economic recovery gained traction, and accommodative monetary policies helped stabilize global financial conditions. Here in Canada, the economy continues to work its way through the implications of low oil prices, even though prices have recovered some lost ground.