In addition to their influence on the terms of trade, external demand conditions also may boost domestic output levels, especially in situations in which domestic expenditure levels are weak. For the euro area, an expansion in net exports clearly played an important role in sustaining output during 2010–2013 and again in 2015.
A second currency now exists alongside the dollar which - given the size and economic strength of the euro area’s financial markets - has the potential to become a significant currency with global status.