Open

Coming up

Don't miss

Replay


LATEST SHOWS

FRANCE IN FOCUS

France: 2014 in review

Read more

#THE 51%

South Africa: Taking a stand against child marriage

Read more

DEBATE

The Future of the Book

Read more

DEBATE

The Future of the Book (part 2)

Read more

REPORTERS

France 24’s best documentaries of 2014

Read more

THE INTERVIEW

'We have to build a new Tunisia', says the president of the Tunisian Parliament

Read more

FACE-OFF

France on alert after attacks: a case of collective hysteria?

Read more

THE INTERVIEW

'Beijing needs to revaluate its policy in the Tibetan areas', says FM of the Tibetan government-in-exile

Read more

INSIDE THE AMERICAS

Uruguay: freed Guantanamo detainees try to adjust to normal life

Read more

France

Euro zone needs exchange rate policy, says Hollande

Video by FRANCE 24

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)