This refers to the possibility that the large size of the euro area as well as its lower trade openness, as compared with the participating Member States, might contribute to reducing the vulnerability of its economy and financial markets to possible external shocks, making euro area developments less correlated with trends prevailing abroad.
Against this background, euro-denominated assets would provide international investors with an opportunity to diversify their portfolios, enhancing the risk-return profile thanks to the pooling of not closely correlated assets. The development of the euro as an international currency is not likely to be a steady process.