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August 20, 2008 3:58:53 PM CDT

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$1.50 Euro Sparks Biz Plea for Help

Posted Feb 28, 08 4:39 AM CST in World,  Business 

(Newser) – Now that its common currency is trading above the $1.50 barrier, eurozone industry is calling for action to remain competitive in global markets. BMW, which has already laid off 5,600 employees, will have to take further action in the event of a "sustained rise" of the euro, reports the Telegraph. "We can't cope with such an exchange gap," compained the CEO of Dassault, France's top aviation company.

European business is bracing for a shift of manufacturing to the US or low-cost areas, and a continued fall of the once-preeminent dollar will only exacerbate the problem. Nevertheless, the European Central Bank hasn't touched its 4% interest rate since June. French President Nicolas Sarkozy, so far the sole European leader calling for lower rates, might find allies in overriding the bank's independence if business malaise continues.

Source Daily Telegraph (UK)

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The euro sign is seen in front of the European Central Bank, ECB, in Frankfurt, central Germany. As the euro breaks the $1.50 barrier, business in the eurozone is starting to fret.   (Associated Press)
As the euro breaks the $1.50 barrier, business in the eurozone is starting to fret.   ((c) tunguska)
As the euro breaks the $1.50 barrier, business in the eurozone is starting to fret.   (Associated Press)
As the euro breaks the $1.50 barrier, business in the eurozone is starting to fret.   ((c) Nadya Peek)
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Nicolas Sarkozy  • US dollar  • euro  • European Central Bank  • BMW  • exchange rate  • global market


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