The countdown is running. Starting conditions for a smooth launch of the euro remain favourable, while the wave of bad news on external economic developments has faded away and global financial markets have tended to stabilise over the last few weeks. A high degree of domestic macroeconomic convergence among designated participants has led to sound economic fundamentals throughout the euro area.
Economic growth is supported by domestic demand.
Nominal and real long-term interest rates are close to historical lows providing a benign investment climate. However, downside risks caused by external factors cannot be ignored. The slow recovery from last year's financial crisis in Asia, the strong contraction of economic activity in Russia, the protracted economic downturn in Japan and tensions in Brazil and certain other Latin American countries inevitably exert dampening effects on global economic activity. And the consensus view is that the euro area will also be affected to some extent. These criticisms are unfounded.