In the beginning, the German “EMU bias” was only small but it has grown to a notable amount during the past decade. At the end of 2007, the share of EMU equity securities in German investors’ portfolio was 51 % higher than the corresponding portion in the global benchmark portfolio. Third, with regard to extra-EMU investment, German home bias was also reduced, albeit slightly.
2  The calculations are similar to those carried out by De Santis, Roberto A. and Gérard, Bruno (2006), Financial Integration, International Portfolio Choice and the European Monetary Union, ECB Working Paper Series, No. 626, May.