Euro's surge poses many questions

Published: 24 May 2003 y., Saturday
That is the question being asked as the single European currency continued to gain against the US dollar and this week pushed above its launch level for the first time It is in stark contrast to the euro's early life. Virtually from its birth in 1999 it lost ground against the dollar. By October 2000 it had fallen in value by 30 per cent to just over 82 cents. But then the dollar underwent a sustained slide in value. So, now at 1.18 is the euro too strong? European Commission spokesman Gerassimos Thomas doesn't think so. He told reporters: "Strengthening of the euro has positive and negative effects. Obviously at first sight it has negative effects on exports, but we have to remember that we depend on the import of specific products." In particular he said the strong euro had compensated for higher than expected oil prices. But in the long-term vital euro zone exports could suffer.
Šaltinis: EuroNews
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