The City of London should no longer be the euro's main financial centre so the eurozone can "control" most financial business in the region, France's central bank governor said in an interview published on Monday (3 December).
Angela Merkel's coalition partners are lining up to demand a Greek exit from the euro, mounting pressure on the German chancellor and fanning market fears that Greece could shortly leave the single currency bloc.
The Group of 20 meeting yesterday (11 November) struggled to agree on meaningful action to rebuild the global economy as the EU tried to calm markets over a crisis that erupted in Ireland, whose bond yields hit record highs reminiscent of the Greek debt debacle.
An all-day G20 planning session grew so intense that officials had to leave the door open to keep the room from overheating, underscoring deep tensions over global economic rebalancing one day before the start of a summit on 11 November.
Finance ministers from the 15 countries using the euro expressed, for the first time, their joint concern regarding their currency's surge to its highest level yet, hinting that the US should be doing more to halt the dollar's downward slide.
China and the 13 countries using the euro will "take comprehensive measures" to "avoid big swings in currency movements" and contribute to "an orderly adjustment of global imbalances", according to a statement issued by the Chinese central bank after a meeting with the EU's top finance officials.
During a state visit to Beijing, French President Nicolas Sarkozy urged China to let its currency rise more quickly against the euro – a message that EU officials are expected to echo in a visit this week (28 November), as the bloc's trade deficit with the booming Asian economy soars.
China should allow its currency to rise more quickly in order to help Europe and the US restore some of their industrial competitiveness and limit growing trade deficits, said finance ministers from the world's seven leading industrialised nations.
Global investors are favouring European currencies as the long-laggard continent ascertains its strong economic growth and the US economy shows signs of a substantial slowdown. But this may not be good news for all.
Slovakia’s currency has been re-evaluated upward to reflect strong economic growth and increased foreign investment, in a move that brings the Central European state one step closer to adopting the euro.
European Central Bank president Jean-Claude Trichet has stressed the importance of a more competitive economy in the eurozone, reminding member states of the part they have to play in keeping the euro stable.