Today in History
Travel to Germany
Facts About Germany
Thirty Years' War
German Chocolate Cake
How To in Germany
Euro Devaluation: Who Is To Blame?
German Chancellor Gerhard Schroeder and his government are said to be
guilty in euro devaluation. The reason is Schroeder's state financial
aid (250 million DM) to the debt-stricken construction giant firm Holzmann.
Moreover, the action was not vetted by EU commission, while it should
have been, as Mario Monti - the EU's commissioner for competition - warned
the German government.
On the other hand, the German government has confessed that it is not
concerned about the fall of the euro to the lowest level in its history.
The government's deputy spokesman, Bela Anda, told journalists in Berlin
that the government had complete confidence in the euro and the power
of the market. He said the euro had considerable internal strength and
therefore was a strong currency with a future. The single currency of
eleven EU states fell on Thursday night in New York to under one dollar
and was quoted at an all-time low rate of 0.9990 dollars in London on
Friday morning, its lowest
level since the euro was launched
in January, 1999. The euro later recovered to stand at 1.0023 dollars.
Leading Frankfurt economists have spoken out against a possible intervention
by the European Central Bank (ECB) in support of the weak euro. Hans Jaeckl,
chief German and European economist for the DG bank said such a move would
signal a retrograde step toward old ways of thinking. He told the dpa
(Deutsche Presse-Agentur) news agency in Frankfurt on Friday that the
euro must gain in strength through its own power.