Both the Eurogroup and ECB representatives make a major contribution to the preparation of the relevant communiqués. The views expressed by the two representatives have always been consistent and ensured an effective message. 4. Interventions in foreign exchange markets. The euro area is fully equipped to conduct – if necessary – such interventions. It did so, very effectively, in the autumn of 2000.
This instrument is in the hands of the ECB, which can assess when and how to use it in the light of the prevailing market conditions and its monetary policy stance. To sum up, the euro area has all the necessary instruments to implement an effective exchange rate policy for the euro. Is there scope for improvement?