France has proposed that major
global powers work together to strengthen the Euro during this time of economic
recovery. President Francois Hollande has suggested purposely altering exchange
rates when the Euro is involved in an attempt to raise its value and give
credibility to the potential Eurozone recovery. French Finance Minister Pierre Moscovici
backed Hollande’s proposition when speaking to other European leaders. This
proposal is countered by German leaders, as they disagree with the alteration
of exchange rates. Despite what many may think, strengthening of the Euro
currency has potential for risk. Should the Euro be strengthened, European
exports would then be more expensive, hurting sales. France seems to be alone
in their desire for an altered exchange rate, so Hollande’s plan will not be
put into effect at this time.
When one country is experiencing
economic turmoil, many others usually do, too. This is the case for most of
Europe. The economies of countries in the Eurozone directly affect each other.
As is evidence by the article, the European economies are so interconnected
that leaders must work together to end the current economic crisis. The state
of European economies affects international trade because it directly affects
the prices of exports, which influences what consumers overseas buy and don’t
buy. Because Europe is so influential and strong globally, the state of their
collective economies affects most other countries around the world.
Eurozone countries:
Eurozone countries:
image: Wikipedia
article: http://www.worldbulletin.net/?aType=haber&ArticleID=103194
"WordBulletin." World Bulletin TURKEY NEWS, WORLD NEWS. N.p., n.d. Web. 12 Feb. 2013.
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