Euro 'too strong for some authorities'

Tuesday, February 18, 2014

President of the Eurogroup, Jeroen Dijsselbloem: By acting decisively, working together with the ECB, we have convinced financial markets that the euro is here to stay.

President of the Eurogroup, Jeroen Dijsselbloem: By acting decisively, working together with the ECB, we have convinced financial markets that the euro is here to stay.

BRUSSELS - The current parity between the Euro and the Dollar is valued at 1.37 ­- a figure considered to be too strong for some authorities, President of the Eurogroup, Jeroen Dijsselbloem said.

Speaking at an OECD-Seminar on Monday, Dijsselbloem said: "The euro area is at a crossroads. The euro remains strong. Some say too strong. Spreads on sovereign bonds have come down sharply. Deficits are on average down to 3 percent of GDP throughout the euro area and national debt is for the first time in many years stabilizing.”

By acting decisively, Dijsselbloem added, and continuing to work with the ECB, the euro area has convinced the financial markets that the euro is here to stay.

Dijsselbloem also urged EU countries to create structural reforms in order to maintain prosperity and social structure of the member countries. He added that unprecedented steps were taken in line with the decision of creating an EU banking union.

“EU countries are creating a banking union at unprecedented speed, designed to break the feedback loop between sovereigns and banks. But of course mainly to get credit out there again. This will not only restore confidence in our banking system, but will above all help to improve the flow of credit to enhance economic growth.”

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