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Breakingviews: France’s euro moaning

Tuesday, Jul 08, 2014 - 04:04

July 8 - Airbus’ CEO has complained about the strength of the euro, echoing grumbles by the French prime minister. But exchange rates can't be a primary target of monetary policy, says Breakingviews.

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Stop cooling breeze from the year that's the message to fonts from breaking -- and PM brass sound joins me now. I get your comments because you. Writing for breaking these but you'll also Frenchman. That the economy minister coming instead the Airbus chief. Has had the old cold for a week a year of it -- -- -- It's an old French thing is doesn't have -- thing it's a little friends think whenever a German heads Eads or Airbus. That you never hear them complain about the strength of the U. Germany's largest exporter in Europe. And you never hear chairman put it -- -- businessmen or export complaining about the Euro strength. It's an old print things that competitive devaluation would be so good because of course it -- visited. How to avoid tough choices home it was high in a written it was rendered powerless when -- you know it's -- to fifteen years ago but not science. Of course you can't. Cites people like Nicklaus who has used complained regularly about the Euro or current French positions of -- Which it stays that no answer is that you shouldn't come you know strength. Hurts companies hurt earnings especially sport is there's no denying them the question is would you do about it. -- euros euros around 136. It was less than you wrote for the first five years of its creation. It is up 12% of the -- -- -- total in the last year 2000 there is an economic problem I do do it you don't tell the ECB what to do. And that conscious about it. And the question -- should be paying the exchange rate it's one of the primary targets and it was the only thing that I've mandates. He's fighting for us there trying to do it. And indirectly. They're concerned about the Europe exchange rate because -- strong bureau. Prevents them from boosting inflation they want to take inflation for dough from 5% currently to 2% which is their target. The strong hero prevents them from doing that effectively civic center and but what can they do as good luck -- news and ECB member of the governing council members had over the weekend. They centuries you know to be determined by international markets these ridiculous it goes. They -- of these it's a problem. They want to boost inflation which could take care of the problem but they can add to acts directly on it so. Calls from exit you know company executives of both positions I wasted time as they should be to do it. 22 and in fact. Now -- -- can fonts and other nations to. Oh what can the ECB do because we've seen the US strength. When. Very suppose it's it's it's in international that ECB seems to do you. With the US strength still -- It's forget about currency interventions which Hollywood content coordinated worldwide by the big major central banks and it's only temporary. Takes two to two to address. Aid crisis situation in this case the vote to go with the interest rates. They have already said that interest rates in The Who has would remain -- to even after. The Fed or the banking and have hiked their own race we know. So called for a long time you -- -- to -- interest rates risen higher progress higher interest rates. In England and US so. They addressing the -- Economic problems and that's what was quote as for the rest the consistency. It's beyond the problem that power. Beckett thank you very much -- can't rest on that from breaking views explaining alive France's cool -- week a year a -- and that's nothing because pretty much nothing much can be done I'm inching along this is what is.

Breakingviews: France’s euro moaning

Tuesday, Jul 08, 2014 - 04:04

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