Snappy newsletters. Simple Facebook sharing. Spirited comments. Sweet features are waiting… GET THEM NOW!

$1.50 Euro Sparks Biz Plea for Help

Pricey currency crushing competition for European industry

By Jason Farago,  Newser Staff

Posted Feb 28, 2008 4:39 AM CST
Email

(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.

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.
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.
As the euro breaks the $1.50 barrier, business in the eurozone is starting to fret.   ((c) Nadya Peek)
As the euro breaks the $1.50 barrier, business in the eurozone is starting to fret.
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.
As the euro breaks the $1.50 barrier, business in the eurozone is starting to fret.   (Associated Press)
« Prev« Prev | Next »Next » Slideshow
To report an error on this story, notify our editors.
A snapshot of the day's best news stories.
 
COMMENTS
Be the first to comment on this story.

Commentary: the rise isn't over yet
Globe and Mail

Money • World

 
exchange rate • Nicolas Sarkozy • euro • European Central Bank • global market • US dollar • BMW • Dassault

More Newser Stories

Euro Dives Below $1.30

Brits Refuse to Back New Europe Pact

As Summit Looms, ECB Slashes Rate Again

Sarkozy, Merkel Announce Plan to Save Euro

Clutching at Straws
NEWS FROM OUR PARTNERS
Other Sites We Like:   24/7 Wall St.   |   Betty Confidential   |   BuzzFeed   |   Cracked   |   Fark   |   Timelines   |   The Frisky   |   Geek Sugar   |   NewsOne