The focus of the summit of finance ministers of the eurozone countries in Brussels was a record strengthening of the euro. But the European Central Bank does not intend to lower rates on the euro. The Prime Minister of Luxembourg, Jean-Claude Juncker, who chairs the meeting, called the situation alarming:
“We insist that exceptional mobility and random fluctuations in exchange rates are undesirable for economic growth. In the current environment, we will more closely monitor the development of the situation in the financial markets.”
In the last quarter of last year, the growth rate of the euro area economy almost halved, to 2.2%. At the same time, inflation in the euro area accelerates: in February, for the first time since the euro was in existence, it amounted to 3.2%. The euro, meanwhile, broke an all-time record of $ 1.52.
However, according to the director of Monsegur Finance consulting company Gregory Moore, the European authorities fought for what they ran into:
“When the European Monetary Union was just created at the beginning of the last century, the struggle for a strong euro immediately began. And this happened. And now the United States feels great in a situation of a weak dollar – this allows them to resist the onset of an economic recession.”
European exporters are under double pressure. A strong euro reduces the attractiveness of their products in the global market. And the economic downturn in the USA, in the main market for Europe, will lead to a reduction in demand.