Not least, domestic investors in these countries took the opportunity of what looked like extremely low borrowing rates on these overseas funds to finance an investment boom, including, inevitably, a good share of over-investment and misplaced investment. These big flows (and the big current account deficits that went with them) were not some kind of aberration, but reflected the normal working of market forces.
But for this constitutional process to succeed, Europe has to become more tangible, something that inspires a true sentiment of togetherness, not only among policy-makers, but also and especially among the citizens of Europe. With the introduction of the euro, we have taken a big step in this direction.