Outlook: Euro blues
Thursday 03 June 1999
There is no doubt that both bankers and politicians could improve matters. They could all learn some vocal discipline, and just shut up about the exchange rate. The spectacle of one lot heaping public blame on the other has traders rubbing their hands in glee before they hit the sell button. And Europe's political elite could make a big difference with a commitment, however symbolic, to the sort of structural economic reforms that are no-brainers on this side of the Channel - lower taxes on jobs, say, or longer store opening hours. It is hardly radical stuff.
The really unexpected aspect of Euroland's currency crisis, however, has been the weakness of two of the core economies, Germany and Italy. This had not been factored in by the financial markets ahead of the launch, so the conflict between the need for lower interest rates in these two countries, in contrast to the booming peripheral economies, has created uncertainty about interest rates and growth prospects.
However, business cycles do turn. The euro will not be weak for ever. And the weakness is overdone precisely because the markets and pundits are focussing on the bad news. The rest of Euroland is doing pretty well. Sentiment about the currency could go into reverse - especially if the bankers and politicians decided to help rather than hinder it.
Harry Potter actor suffered 'severe flu-like symptoms' on a flight from London to Orlando
Rap music mogul accused of running two men over in his truck
World cities ranked in terms of safety, food security and 'liveability'
First full-length look is finally here
"Oink! Oink! Hee hee hee!" First interview with the big-screen star
Biohacking group hopes technology will lead people to think about even more dystopian uses
The party's potential nominations read like a high school race for student body president
- 2 The awkward moment Sarah Palin raised $25,000 for Hillary Clinton's election campaign
- 3 Ball pool for adults opens in London
- 4 Amal Clooney gives excellent response to fashion question at European Court of Human Rights
- 5 Baldness could soon be treated using stem cells, scientists hope
Woman falls to her death as she celebrates marriage proposal at the edge of Ibiza cliff
Mia Khalifa: Pornhub star claims Drake sent her 'cringeworthy' naked photos on Instagram
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
The awkward moment Sarah Palin raised $25,000 for Hillary Clinton's election campaign
Ball pool for adults opens in London
9 reasons Greece's experiment with the radical left is doomed to failure
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
Have we reached 'peak food'? Shortages loom as global production rates slow
Greece elections: Syriza and EU on collision course after election win for left-wing party
British grandmother Lindsay Sandiford faces execution by firing squad in Indonesia
Liberal Democrat minister defends comments suggesting immigration causes pub closures
iJobs Money & Business
£30000 - £35000 per annum + Benefits: Ashdown Group: Marketing Manager - Marke...
£13000 per annum: Recruitment Genius: This Pension Specialist was established ...
£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...
£25000 - £35000 per annum: Recruitment Genius: A Technical Report Writer is re...