Ciarán Cuffe
Ceist:167 Mr. Cuffe asked the Minister for Finance his views on the recent appreciation in the value of the euro currency; and the effects he considers this might have on the economy. [5393/03]
Written Answers - Euro Currency.
The euro is currently trading higher against the US dollar and sterling than at the same time last year. The appreciation of the euro affects the economy in a number of different ways.
On the positive side, it lowers inflation by reducing input prices and reduces oil prices, as oil is invoiced in US dollars. However, it also reduces the competitiveness of Irish firms exporting to the UK and US and of firms competing with US and UK firms in third country markets. In addition, by diminishing the competitiveness of the euro area, it lessens demand for Irish goods and services in the euro area.
That is why competitiveness is a priority for this Government. We must remain vigilant to the risks to our competitiveness such as wage and price inflation, otherwise jobs will be at risk.
Question No. 168 answered with Question No. 143.