Now, with hard currency in hand, the public will become more aware of the fact that a Euro is a Euro, and that the internal stability of the Euro counts. Stable price developments and a low level of long-term interest rates provide a firm basis for growth. In addition, the Euro ended once and for all the uncontrolled spending dynamics of the past.
Indeed, the EU is unique in having set itself a standard for sound government finances through the Stability and Growth Pact. In this light, you probably all heard about the early warning that the European Commission recommended for Germany and Portugal. As a consequence, both countries strongly re-committed themselves to budgetary consolidation and the close to balance rule of the Pact.