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|Onderwerp: French minister insists euro not in danger Sat May 22, 2010 5:38 pm|| |
French Economy Minister Christine Lagarde said on Thursday that she did not believe the euro's survival was in danger, after a German clampdown on short-selling triggered a new fall in the currency.
|PARIS, FRANCE May 20 2010 11:39 |
Lagarde said France would not follow Germany's unilateral ban on the naked short-selling of certain stocks and bonds, and distanced France from German Chancellor Angela Merkel's warning that the euro was in danger.
"I absolutely do not believe that the euro is in danger," Lagarde told RTL radio. "The euro is a solid, credible currency that has assured the stability of the eurozone for more than 10 years."
While Lagarde denied there was any dispute between Paris and Berlin on euro policy, her comments clearly marked her stance as separate from Merkel's, both in terms of regulatory policy and of its presentation.
On Wednesday, Merkel had defended her short-selling ban in stark terms.
"This test is existential and it must be overcome ... if the euro fails, then Europe fails," she told German lawmakers. "The euro is in danger.
"If we do not avert this danger then the consequences are incalculable and the consequences for the whole of Europe are also incalculable."
Despite Merkel's insistence that European solidarity is vital for the creation of what she called a "culture of stability", her decision to impose the short-selling ban without consulting her partners spooked the markets.
The euro plunged to its lowest level against the dollar in four years on Wednesday, before rallying slightly Thursday to around $1,23.