Brussels to close ranks to denounce the appreciation of the euro
in Brussels to close ranks to denounce the appreciation of the euro against the dollar. "Under the current circumstances, we are concerned about excessive exchange rate movements," said the chairman of the Eurogroup, Jean-Claude Juncker, after the monthly meeting of major Finance of monetary union.
The Luxembourg Prime Minister underlined that it was "the first time" he used those words. "Markets surréagissent compared to the short-term indicators and should look at the fundamentals," he added, while the single currency has reached in the course of the day 1.5266 dollar.
Earlier, the president of the European Central Bank (ECB), Jean-Claude Trichet, had himself broke the silence he needed when he participates each month at the Eurogroup: "In the circumstances , I consider it very important that has been reaffirmed by the American authorities, including the Secretary of Treasury and President George W. Bush, that the strong dollar policy is in the interest of the United States "at he said.
THE DILEMMA OF THE ECB
The tone adopted Monday by the Europeans in contrast with the cacophony that sometimes characterizes their positions in foreign exchange. Willingly peak against the strong euro, the French Minister of Finance, Christine Lagarde has contented itself "elements of language" prepared extensively with its counterparts. "There are psychological thresholds," she said soberly to justify the firmness displayed by the Europeans.
Concerned by the exchange rate, the leaders of the area, however, have expressed their confidence in the ability of the European economy to resist the crisis of American mortgages. "In a difficult environment, we know that we are not immune," said Joaquin Almunia, the Commissioner for Economic and Monetary Affairs, "but our economy shows a strong resilience." While the bad news accumulates in the United States and Europe, the Commission confirmed on Monday that inflation had stabilised in February to 3.2% in the zone. A record level and a dilemma for the ECB, in a two day meeting of its governing council Thursday in Frankfurt.
In this context considered highly uncertain, several officials in the area have questioned the recent statements made by Dominique Strauss-Kahn, the Director General of the International Monetary Fund. The ECB "did its job well in containing inflation" but is "over" because it "does not have a political counterweight in the person of a real European Minister of Finance who will be in charge of growth," estimated the number one of the IMF in an interview with Le Monde on Monday.
"I do not think the ECB is too powerful. It works well," replied the Dutch Minister of Finance, Wouter Bos. "We do not share the analysis of M. Strauss-Kahn, "said Mr. Juncker recalling that the situation was identical to the Maastricht Treaty was approved in France "referendum". The chairman of the Eurogroup has once again reiterated that the euro zone did not need a "revival plan" as advocated globally by the boss of the IMF. Mr. Juncker said that "make every effort" to avoid second-round effects, ie an increase in wages precipitated in the wake of soaring prices.
The Luxembourg Prime Minister underlined that it was "the first time" he used those words. "Markets surréagissent compared to the short-term indicators and should look at the fundamentals," he added, while the single currency has reached in the course of the day 1.5266 dollar.
Earlier, the president of the European Central Bank (ECB), Jean-Claude Trichet, had himself broke the silence he needed when he participates each month at the Eurogroup: "In the circumstances , I consider it very important that has been reaffirmed by the American authorities, including the Secretary of Treasury and President George W. Bush, that the strong dollar policy is in the interest of the United States "at he said.
THE DILEMMA OF THE ECB
The tone adopted Monday by the Europeans in contrast with the cacophony that sometimes characterizes their positions in foreign exchange. Willingly peak against the strong euro, the French Minister of Finance, Christine Lagarde has contented itself "elements of language" prepared extensively with its counterparts. "There are psychological thresholds," she said soberly to justify the firmness displayed by the Europeans.
Concerned by the exchange rate, the leaders of the area, however, have expressed their confidence in the ability of the European economy to resist the crisis of American mortgages. "In a difficult environment, we know that we are not immune," said Joaquin Almunia, the Commissioner for Economic and Monetary Affairs, "but our economy shows a strong resilience." While the bad news accumulates in the United States and Europe, the Commission confirmed on Monday that inflation had stabilised in February to 3.2% in the zone. A record level and a dilemma for the ECB, in a two day meeting of its governing council Thursday in Frankfurt.
In this context considered highly uncertain, several officials in the area have questioned the recent statements made by Dominique Strauss-Kahn, the Director General of the International Monetary Fund. The ECB "did its job well in containing inflation" but is "over" because it "does not have a political counterweight in the person of a real European Minister of Finance who will be in charge of growth," estimated the number one of the IMF in an interview with Le Monde on Monday.
"I do not think the ECB is too powerful. It works well," replied the Dutch Minister of Finance, Wouter Bos. "We do not share the analysis of M. Strauss-Kahn, "said Mr. Juncker recalling that the situation was identical to the Maastricht Treaty was approved in France "referendum". The chairman of the Eurogroup has once again reiterated that the euro zone did not need a "revival plan" as advocated globally by the boss of the IMF. Mr. Juncker said that "make every effort" to avoid second-round effects, ie an increase in wages precipitated in the wake of soaring prices.
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12:24 PM
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