The trap for the euro zone: If it becomes more credible, the euro will appreciate

If the euro zone implements policies that reduce the member countries' heterogeneity, increase solidarity between countries and boost the technological level and potential growth, the euro zone will become more credible. This development would be positive and necessary for the euro's solidity. The problem is that when the euro zone becomes more credible - as is the case today - capital flows into the zone and the euro appreciates, which is negative for euro-zone industry.