Don't miss

Replay


LATEST SHOWS

THE DEBATE

Populist takeover: Italy approves unprecedented coalition

Read more

FOCUS

Young Nicaraguans lead protests against President Ortega

Read more

ENCORE!

Music show: Opera singer Lawrence Brownlee, Snow Patrol & Natalie Prass

Read more

TALKING EUROPE

EU Commissioner Johannes Hahn: 'Either we import stability, or we export instability'

Read more

TALKING EUROPE

From Italy to Cyprus via Hungary: A look back at key events in Europe

Read more

BUSINESS DAILY

US-China trade war is 'on hold'

Read more

#TECH 24

Is GDPR a good thing for EU tech companies?

Read more

PERSPECTIVE

'The internet is like water, we need to help children understand how to swim'

Read more

THE OBSERVERS

Horse massacres in Iran, fake news turning deadly in India, and Ivory Coast's drought

Read more

France

Euro zone needs exchange rate policy, says Hollande

Text by News Wires

Latest update : 2013-02-05

French President François Hollande called on the euro zone on Tuesday to develop an exchange rate policy to help protect the common currency from “irrational movements”.

French President Francois Hollande called on the euro zone on Tuesday to develop an exchange rate policy to protect the currency from “irrational movements”.

His comments came amid growing concern within his Socialist government that the euro, now trading around 1.35 to the dollar, is too strong and could undermine the country’s exporters and hence wider economic growth.

Hollande said that competitiveness reforms under way in many euro zone countries including France risked being undermined by the euro’s exchange rate with key trading partners, but he stopped short of calling for exchange rate targets.

“Europe... is leaving the euro vulnerable to irrational movements in one direction or the other,” he said in his first speech as president to the European Parliament in Strasbourg.

“A monetary zone must have an exchange rate policy or else it ends up being subjected to an exchange rate that does not match the true state of its economy.”

Hollande said the European Central Bank should remain independent and called instead for a reform of the international monetary system to better protect European economic interests. He did not spell out what reforms he had in mind.

His remarks came after Industry Minister Arnaud Montebourg called for a weaker euro to help French exports, as the French government tries to revive a weakening manufacturing sector and narrow a large trade deficit.

“This is not about externally setting a target for the European Central Bank, which is independent, but about engaging the essential reform of the international monetary system,” Hollande said.

He added that countries with strong exports, which is the case of Germany and several Nordic nations, should stimulate internal demand to create a fairer balance in the 27-member European Union.
 

(REUTERS)

Date created : 2013-02-05

  • FRANCE-GERMANY

    Hollande, Merkel say they’ve got the ‘right chemistry’

    Read more

  • EUROZONE

    Eurozone jobless rate hits new record

    Read more

  • GERMANY

    Merkel warns of "difficult" 2013 for Germany and eurozone

    Read more

COMMENT(S)