French Prime Minister Urges ECB to Lower Valuation of Euro

French Prime Minister Urges ECB to Lower Valuation of Euro

French Prime Minister Manuel Valls has asked the European Central Bank to devalue the Euro in order to deal with the deflation risk in the European Union. ECB President Mario Draghi has given strong signals during the monetary policy announced in June.

The next course of action will be decided at the September 4 monetary policy meeting in Frankfurt. ECB President Draghi will also meet the French President Francois Hollande tomorrow in Paris.

The problems for European Union have not ended as Italy and Spain are still facing tough times and consumer confidence in Germany has declined in the latest released numbers. Germany is still pushing for debt reduction.

The deflation risk in the European Union will put further pressure on ECB. The inflation in 18-countries using Euro declined to 0.3 percent in August compared to 0.4 percent during July. The inflation reduced to 0.5 percent in Spain during August.

A recent report published in Reuters has suggested that Central Bank could continue with its wait-and-see policy and is unlikely to announce any measures in upcoming policy meeting on September 4.

Euro has witnessed a decline against USD and other major currencies in the past three months. The Euro closed near its yearly low against USD in August.

Popular Stories

Overall childhood ‘asthma epidemic’ levels off in U.S.

The overall ‘asthma epidemic’ among children has... Read More

‘UC Quits’ Working to Help California Smokers Get Rid Of Smoking

As New Year is approaching, people have already... Read More

Scientists begin Stem Cell research to find cure for Alzheimer’s

Alzheimer’s disease, the commonest cause of... Read More

New House Bill to Restrict First-Time Opioid Prescriptions

Cases of opioid abuse have been increasing and... Read More

Comcast installs DOCSIS 3.1 modem on customer-facing network in Philadelphia

In an announcement made on December 22, cable giant... Read More