France's Raffarin Backs Germany's Schroeder's Call for Action on Euro

[rodbarnett]

PARIS (AP) - French Prime Minister Jean-Pierre Raffarin on Thursday threw his weight behind German Chancellor Gerhard Schroeder's call for the European Central Bank to consider cutting euro-zone interest rates to help the euro fall against the dollar.
"I share the chancellor's views on rate cuts," Raffarin told reporters.

"Currency parities aren't reflecting economic reality at the moment. The brutal nature of the shift in euro-dollar parity is good for neither Europe nor the United States."

<snip>

"The weakness of the dollar and the resulting strength of the euro is giving us problems in exports, and the European Central Bank should concern itself intensely with this problem," Schroeder said in an interview with Germany's NDR radio.

Schroeder is also expected to discuss the strong euro's economic impact with President Bush when they meet Friday in Washington.

http://ap.tbo.com/ap/breaking/MGAVXN315RD.html

[bemildred]

1. Oh good, a race to the bottom. nt

[aneerkoinos]

2. Let them flap their lips

ECB is independent. VERY independent. And France and Germany don't currently enjoy much prestige at EU organs, because of their deficits in breech of stability pact. ECB cutting rates is very unlikely.

[bemildred]

3. Thanks, it's hard to tell out here in TV land.

I was aware of their difficulties with handing their credit,
but the power relationships are not clear from here. It seemed
like a singularly boneheaded idea. We could wind up with every
government in the World engaged in a money-printing contest with
each other. On the other hand, that would seem like a fitting end
for Capitalism.

[silverpatronus]

4. let me see if i have this straight...

my money is stronger than your money, so i want to devalue my money...why?

[Sinistrous]

5. Because if my money is stronger

than your money, you will not buy MY stuff because it costs too many of your weaker monetary units and I go out of business.

Edit: grammar