In this regard, the euro is already acting as a catalyst for the development of a fully integrated European capital market. This market will be more efficient and more liquid than the segmented, national markets which preceded it.
Ultimately, however, and I repeat, the extent to which this translates into actual inward investment will depend on the market’s perception of economic policies and growth potential in the euro area. And this brings me to another important role of the euro, namely, it acts as a catalyst for economic reform.