French Finance Minister Says Euro very High

French Finance Minister Christine Lagarde said Tuesday that the euro was very high as the European single currency hit a new record against the U.S. dollar.

The euro is very high. I am always worried, Lagarde told reporters when she addressed the European Parliament's economic committee here.

The euro hit an all-time high of 1.6038 U.S. dollars in European trading earlier today, making European exports more expensive.

France has repeatedly complained about the continuous appreciation of the euro. While stressing a strong euro was hurting exports, Lagarde said there were also benefits.

Every coin has two sides. The higher the euro, the better our oil bill will be. That is one side of the coin. The other side of the coin is that our exporters, who base their costs in the euro zone, are clearly suffering from this imbalance I have referred to on many occasions, she said.

Lagarde, whose country holds the European Union (EU) rotating presidency, blamed wider financial market problems for the euro's strength.

It's clear that the euro is currently paying because of the lack of stability currently, she told EU lawmakers.

Lagarde defended French President Nicolas Sarkozy's position that EU member states should be allowed to have a voice on the monetary policy of the euro, which is solely handled by the European Central Bank.

I don't think he ever wanted to in any way challenge the independence of the European Central Bank, Lagarde said.

It would be legitimate for member states to also have an opportunity to express their point of view, to have a dialogue with the ECB, because they have got policy considerations as well to which they need to give voice, she added. 



Source: CRIEnglish