Information costs have been reduced as well. The euro is also enhancing price transparency and discouraging price discrimination: this is helping to reduce market segmentation, and is also fostering competition. Hence, the euro is acting as a catalyst for the single market programme while providing a positive impetus to the euro area economy.
Furthermore, there is likely to be a drag on activity for some time to come on account of the ongoing process of balance sheet adjustment in the financial and non-financial sectors, both inside and outside the euro area.