Thursday

27th Apr 2017

France questions ECB role on euro exchange rate

French prime minister Dominique de Villepin has said the European Central Bank should not be left alone to set exchange rates for the euro.

"We cannot allow the ECB to act alone on rates," said Mr de Villepin, according to Reuters.

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  • "All the great trading powers have a foreign exchange policy," says the French PM (Photo: European Commission)

Speaking at a meeting with sub-contractors for plane maker Airbus in southern France, he went on to warn that "its current level hurts some of our exports" and that Europe needs a "monetary shield."

"Let us equip ourselves with a real exchange rate strategy which integrates the objectives of growth, protection of our industry and of course employment. It is a major subject which we should address at European level."

Saying that all great trading powers have a foreign exchange policy, he made the case for Europe more strongly defending its own interests "rather than remaining the only trading power in the world that doesn't have effective rues against the excesses of globalisation."

The prime minister's comments come as the ECB is set to raise interest rates once more this year in December, with France being just one of several member states who have urged ECB chief Jean-Claude Trichet not to keep raising the rates and hurt economic recovery.

The independence of Europe's central banks is also coming under fire outside the eurozone, with Poland expected to appoint a new, government-friendly central banker in January after fiscal disciplinarian Leszek Balcerowicz departs.

Eurogroup makes 'progress' on Greek deal

Eurozone ministers endorsed an agreement in principle between the Greek government and its creditors over a new package of reforms. But talks on fiscal targets and debt could still block a final agreement.

New anti-trust complaint looms over Microsoft

At least three security software companies “met several times” with the European Commission to complain about Microsoft’s alleged abuse of its market position. A formal case could follow.

Commission stops German-British stock merger

The decision to block the merger of the London Stock Exchange and Deutsche Boerse was expected, as negotiations between the parties broke down a few weeks ago.

SMEs lack support in EU financial plan

The European Commission's plan for a capital markets union is said to be aimed at small and medium-sized enterprises, but many could end up being left out in the cold.

New anti-trust complaint looms over Microsoft

At least three security software companies “met several times” with the European Commission to complain about Microsoft’s alleged abuse of its market position. A formal case could follow.

Investigation

MEPs oppose EU agency to prevent Dieselgate II

The European Parliament said on Tuesday that there should be more EU oversight on how cars are approved, but stopped short of calling for an independent EU agency.

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