gata.org / By Hugh Carnegy and Alice Ross, Financial Times, London / Tuesday, February 5, 2013
Hollande Warns on Euro Strength
By Hugh Carnegy and Alice Ross
Financial Times, London
Tuesday, February 5, 2013
http://www.ft.com/intl/cms/s/0/5ffe511a-6f7e-11e2-956b-00144feab49a.html
Francois Hollande has issued a clear warning that the current strength of the euro could damage the fragile economic recovery in Europe, calling for international action to stem currency distortions.
“The euro should not fluctuate according to the mood of the markets,” the French president told the European parliament in Strasbourg. “A monetary zone must have an exchange rate policy. If not, it will be subjected to an exchange rate that does not reflect the real state of the economy.”
He said he was not calling for the European Central Bank to set an exchange rate target, but he demanded “an indispensable reform” of the “international monetary system.”
He added: “If not, we are insisting on countries making efforts to be competitive which are destroyed by the rising value of the euro.”
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