Large losses have been incurred by major international financial institutions. Several household names in global investment banking have disappeared. Appetite for risk – which had been strong to the point of recklessness in some areas – has given way to risk aversion. Credit is harder to obtain, and more expensive.
The euro area’s 330 million or so citizens are now benefiting from the fact that the currency in their wallets is as solid as the Deutsche Mark used to be (“so hart wie die D-Mark”). The euro – a stable currency The euro is just as strong as the most stable of its predecessors. The ECB has ensured price stability in the euro area.