Why is there a talk of a sovereign debt crisis in the euro area rather than in the US or the UK? And why has the epicenter of financial markets turmoil moved from the US to the euro area. Before I try to answer these questions in greater detail, let us recall some of the basic considerations of optimal currency areas.
Compared with the December 2010 Eurosystem staff macroeconomic projections, the lower ends of these ranges have been  BIS central bankers’ speeches  1  shifted upwards, reflecting better prospects for the global economy – and thus for euro area exports – as well as for domestic demand. The March 2011 ECB staff projections are broadly in line with forecasts by international organisations.