John Perry
Ceist:168 Mr. Perry asked the Minister for Finance his views on the efforts of European Ministers to reduce the strength of the euro. [4692/04]
Amharc ar fhreagraTuesday, 17 February 2004
Ceisteanna (84)
Freagraí scríofa
As Minister for Finance, I have not commented in the past on the euro exchange rate and I do not now propose to make any specific comment on the euro exchange rate. The Eurogroup Ministers' meeting on 19 January 2004, with the ECB President Jean Claude Trichet, agreed the following statement on the euro exchange rate:
Concerning exchange rates, our long-term strategy does not change: the euro must keep its value over the medium and long run, in line with economic fundamentals. In the present circumstances we particularly stress stability and we are concerned about excessive exchange rate moves.
I also recently attended the meeting of G7 Finance Ministers in Florida in my capacity as President of the Ecofin Council. The statement issued by the G7 Ministers included the following comments on exchange rates:
We reaffirm that exchange rates should reflect economic fundamentals. Excess volatility and disorderly movements in exchange rates are undesirable for economic growth. We continue to monitor exchange markets closely and co-operate as appropriate. In this context, we emphasise that more flexibility in exchange rates is desirable for major countries or economic areas that lack such flexibility to promote smooth and widespread adjustments in the international financial system, based on market mechanisms.