Edition: International | Greek
MENU

Home » Business

Ministers present united front on euro levels

By: EBR - Posted: Tuesday, December 7, 2004

Ministers present united front on euro levels
Ministers present united front on euro levels

Ministers from the 12 countries that share the euro issued a joint statement expressing concern about the continued high level of the currency against the dollar.

As the euro reached new highs against the US currency and approached the 1.35 level, ministers described the recent currency moves as "an unwelcome development" and stated, "all major countries and economic areas must play their part more actively in reducing global imbalances".

A strong euro against the dollar makes exports from the euro zone to the US more expensive and is likely to dampen growth in the euro zone's export-driven economy.

The President of the European Central Bank, Jean-Claude Trichet called on the US to play their part in stemming the decline of the dollar.

In an unusual appearance at the post-meeting press briefing, Mr Trichet said, "we all have homework to do ... that is true on both sides of the Atlantic".

Austrian Finance Minister Karl-Heinz Grasser said it was "unacceptable that Europe is paying the bill for major imbalances in the US".

The pleas have so far fallen on deaf ears in Washington, with the administration emphasising that the EU needs to engage in structural reform to boost growth.

But the rhetoric from Europe seems to have had some impact on the markets, with the euro gaining slightly in overnight trade as traders took the statement to be a further hint that European intervention to strengthen the dollar is possible.

READ ALSO

EU Actually

Is a new euro crisis looming?

N. Peter KramerBy: N. Peter Kramer

In his weekly column N. Peter Kramer writes the interest rate differential between French, Belgian and Italian bonds and German is widening rapidly. The markets are targeting the eurozone countries with the highest debt. Is a new euro crisis looming?

Europe

How the EU’s Single Market Could Unlock Enlargement

How the EU’s Single Market Could Unlock Enlargement

Much has been said of the changes Brussels is trying to make to the EU enlargement process. Here’s why gradual integration might—or might not—be the answer.

Business

Businesscraft: Japan’s Quiet Discipline for a Fractured World

Businesscraft: Japan’s Quiet Discipline for a Fractured World

For almost thirty years after the end of the Cold War, geopolitics stayed away from the corporate boardroom. Geopolitical considerations belonged to the foreign ministry or to a dedicated risk committee back at headquarters, and rarely crossed a CEO’s desk.

MARKET INDICES

Powered by Investing.com
All contents © Copyright EMG Strategic Consulting Ltd. 1997-2026. All Rights Reserved   |   Home Page  |   Disclaimer  |   Website by Theratron