It is also a source of continued support for euro area exports and investment. However the slowdown in the US economy could be more pronounced and the US dollar exchange rate could come under renewed downward pressure. In these conditions, it remains to be seen whether the recent signs of emerging economies de-coupling from US developments will usher in a sustainable process.
Another crucial question is whether the euro will continue to bear more than its share in the resorption of global imbalances. Here I refer to the continuous strengthening of the exchange rate of the euro not only vis-à-vis the US dollar but also vis-à-vis the currencies of countries recording year after year large current account surpluses.