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Facts About Germany German History German Recipes |
Euro Devaluation: Who Is To Blame?Date: 12/05/99 German Chancellor Gerhard Schroeder and his government are said to be guilty in euro devaluation. The reason is Schroeder's state financial aid (250 million DM) to the debt-stricken construction giant firm Holzmann. Moreover, the action was not vetted by EU commission, while it should have been, as Mario Monti - the EU's commissioner for competition - warned the German government.
On the other hand, the German government has confessed that it is not concerned about the fall of the euro to the lowest level in its history. The government's deputy spokesman, Bela Anda, told journalists in Berlin that the government had complete confidence in the euro and the power of the market. He said the euro had considerable internal strength and therefore was a strong currency with a future. The single currency of eleven EU states fell on Thursday night in New York to under one dollar and was quoted at an all-time low rate of 0.9990 dollars in London on Friday morning, its lowest level since the euro was launched in January, 1999. The euro later recovered to stand at 1.0023 dollars. Leading Frankfurt economists have spoken out against a possible intervention by the European Central Bank (ECB) in support of the weak euro. Hans Jaeckl, chief German and European economist for the DG bank said such a move would signal a retrograde step toward old ways of thinking. He told the dpa (Deutsche Presse-Agentur) news agency in Frankfurt on Friday that the euro must gain in strength through its own power. Related links:
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